Archive for May, 2014

Asia’s Economic Forecast

May 28th, 2014

asia-pacific-regionLast week Asia witnessed a dollar rise against the yen. This is probably connected to potential investors waiting on what lies ahead for the American and Japanese monetary policy. In addition, the Thai baht plummeted after martial law was declared by the army. The dollar has been mixed vis-à-vis other currencies in the Asia-Pacific region.

During the same time period, there was an escalation in the US dollar to 58.59 Indian Rupees, following political advancements in the general election by the India unit. As well, it strengthened to 11,446.30 Indonesian rupiah and 43.69 Philippine pesos.

How is Asia’s economic outlook being impacted today? According to the IMF, one way is China’s sharp slowdown (which was most likely caused by vulnerabilities in the fiscal sector). Yet it is anticipated that Asian growth and development will remain steady at 5.4 percent in 2014 (a slight jump from the previous forecast of 5.3 percent). Thereafter this will increase to 5.5 percent in 2015. America and Europe’s fiscal recovery is likely to be good news for Asian regional markets too.

But at the same time, warned Michael Spencer, Asia Chief Economist at Deutsche Bank, some of S.E Asia’s regional currencies could be subject to “downward pressure,” given that American bond yields increase vis-à-vis the recovering economy.

Those who are concerned about cheaper energy prices bringing back manufacturing to America and the impact that will have on the Asian economy, need not fret. Asia has a well-established supply chain and this thus should not affect its principal tech manufacturing market. Plastics and petrochemicals industry might encounter pressure however.

Asia Investors Seeking US Properties

May 22nd, 2014

Brickell-FlatironOver the last year or so, Asia investors have increasingly been purchasing US properties. In the second quarter of 2013, Grand China Fund (a real-estate investment firm based in Beijing) took an 80 percent stake in a 286-unit Houston rental complex. A similar statistic was seen in 2012 in Atlanta with a 170-unit residential project. According to Esther Fung’s Wall Street Journal report, Asia investors are moving out of traditional New York, LA and San Francisco for property purchase.

If this trend continues, Miami could soon become the next hot spot for outside investors.   Earlier this month, in a recent news article, Charlie Rosier, a Blackfish director, said “Chinese investment in Miami, Florida’s biggest city, accounted for 3.7 per cent of the city’s property sales.” Gray Swoope, CEO of Enterprise Florida, echoed this sentiment. He said, “Miami has been described as the Hong Kong of Latin America. South Florida has a huge advantage for Chinese businesses looking to locate their headquarters for Latin America.”

A few weeks ago, 552 residential units at Brickell Flatiron developed by Valdimir Doronin of CMC Group went on sale. Designed by architect Luis Revuelta the unique building located at the north of the Metromover tracks and the current Flatiron Park.

In addition, for foreign investors looking for a piece of New York, the new Flatiron Building might be just what they are looking for. Designed just like the iconic Flatiron building in Manhattan (due to its triangular shape), it could be said that a little piece of New York has arrived in Miami.