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With all this talk of global economic recession, it is interesting to see that business continues to boom in many Asian markets. Obvious effects from currency shifts and increasing production costs predominantly due to rising oil prices are of course evident. However Asian markets, like other emerging regions such as Central/South America and the Middle East, are feeling less of the burn. This is largely due to the strong underlying fundamentals; large, young population, abundant natural resources, emerging consumer middle classes and low debt ratios - all of these factors are major contributors.

The following market statistics provide a broad overview of what is going on in global property markets:

According to recent results of a survey conducted by the Asian Real Estate Association and the European Association for Investors, international property investors are confident in Asian markets over the next few years. There is strong feeling that the impact of the global credit crunch will be less severe in the region than in Europe or the United States Fund managers and institutional investors are looking to raise their exposure in Asia and markets that feature in the top target lists are Japan, India and Vietnam.

Home prices fell in 23 United States metropolitan areas in March as rising foreclosures prolonged the housing recession. Foreclosure filings surged 65 per cent and bankruptcies more than doubled in April compared with a year ago.

Latest data reflects that British property prices are continuing to fall with the Land Registry recording a decline of 0.2% in April. Although it is difficult to predict when the market will bottom, property investments should be seen as a medium-long term investment with London remaining a premier international market.

Iran's property market is fast spiraling out of control with property prices out of reach of ordinary citizens. Property prices in the affluent suburbs of Tehran compete with upmarket neighbourhoods in Paris, with one luxury 1,400sqm penthouse sold recently for US$ 21 million whilst the average salary stands at US$ 300 ?US$ 460 per month.

Japan's housing starts declined at a slower pace in April, a positive sign that the world's second largest economy is recovering from the slump driven by a change in building regulations.

There has been some negative news surrounding Vietnam's economy of late with reports of the stock market being down 55% this year. The currency is under pressure and inflation is running at 25%, its highest since 1992, which of course is a cause for concern.

With the backdrop of all this negative data, is the outlook all doom and gloom? There has indeed been a price correction in the property market, yet industry sentiment is that the medium term still remains positive. The Australian-listed Vinacapital considers Vietnam's real estate market to be strong with unabated demand for hotels, office and retail space as well as land for residential developments. Demand for all types of real estate is high and supply limited, particularly in the primary and secondary cities, such as Ho Chi Minh and Danang, who suffer from a lack of international standard housing and office space. Prices are driven up by the increasing demand due to growing local affluence and an influx of foreign workers and investment into the main cities.

For further information on any of these property markets contact us.

The above commentary has been provided independently by IP Global Limited and is for reference only. As with any market, conditions do change and of course personal circumstances vary from client to client. You are therefore advised not to rely on the information above, but instead to meet with one of IP Global's team before deciding to follow any course of action. The Henley Group Limited shall not be responsible or liable for any damage or loss caused by the use or reliance on the information provided.