RICS (Royal Institution of Chartered Surveyors) has recently commissioned Savills Research to produce a report on a number of key housing markets across Asia including Mainland China (Shanghai and Beijing), Hong Kong, Singapore, Japan (Tokyo), Korea (Seoul), Malaysia (Kuala Lumpur) and Thailand (Bangkok), detailing how housing systems have evolved against the wider national economic and
socio-demographic contexts of selected Asian countries over the last 50-60 years (before the recent serious financial turmoil in the United States).

The most remarkable finding for the Hong Kong market is the continualrapid rise of demand and price for luxury housing. Between Q3 2003 and Q3 2007, luxury house prices have grown by 142% compared to 44% for the market as a whole. Demand in the luxury market is fuelled by the increasingly wealthy number of locals as well as the high number of expatriates living and working in the financial hub.

High demand for, and low supply of, luxury homes is leading to robustprice rises in this end of the market. Transactions of luxury properties rose from 1,023 in 2002 to 6,682 in 2007, representing a 46% average annual increase in transactions. Limited developable space, a prevalence of high-end properties and preference for living in the Hong Kong Island area has meant prices here are higher than elsewhere in Hong Kong.

This trend is found similarly in Shanghai and Beijing according to the Report. Demand for high-end rental properties is high in both Shanghai and Beijing, which is often generated by the expatriates working in these cities. Demand for housing is acute at all levels but the strongest price rises are to be found in the new homes market and the luxury end of the residential market.

Mr. Simon Smith, Deputy Managing Director, Head of Research & Consultancy, Savills Valuation and Professional Services Limited,commented, "At a time of volatility many of the long term trends
highlighted in this report should provide us with reassurance that the 'Asian growth story' is by no means over."

Mr Henry Li, Chairman, RICS China, "Facing the threat of a backdrop of American-driven global financial turmoil, China cut key lending rates and the reserve requirement on smaller banks on 15 September 2008. By depicting the picture of the housing market in China, this report will help understand the reasons as to why the China's housing market is not expected to experience a similar property bubble to other economies exposed to the current 'global credit crunch."

Mr. David Tse, Chairman, RICS Hong Kong, "The continued integration with China has alleviated the impact of slowing economy, credit crunch, and high inflation to Hong Kong, but scarce supply of developable land in urban areas and constant inflow of investors' funds into Hong Kong help to stabilize the downward trend of residential prices. Reduced sales activities and price adjustment are foreseen in the coming months."