Report: Overall SARS Impact on Asia-Pacific Real Estate to be Minimal

SINGAPORE-The head of research for Jones Lang LaSalle’s Asia-Pacific division says the impact of SARS on the real estate markets of Asia Pacific will depend on how quickly the virus can be contained in the various countries in the region, in particular Singapore, Hong Kong and China.

In a report published by JLJ, Dr. Lai Boon Yu says the effect on aggregate real estate market activity in the Asia Pacific region could range from marginal risk to long-lasting implications depending on the duration and scope of the epidemic, but is likely to be more of the former than the latter.

“…We are of the view that the overall impact of SARS on real estate market activity in Asia Pacific is expected to be minimal, with a rebound by the fourth quarter in Hong Kong and Singapore and early 2004 in China,” states Yu in his report. “…the major Asian economic hubs of Singapore and Hong Kong are seeing early signs of recovery in business activity and home sales while Shanghai has been relatively unscathed by SARS …, (reinforcing) the view that SARS will only be a temporary blip in the key Asian real estate markets.”