While we wait for the dust (sand) to settle in Dubai, a look around the rest of the world shows some striking differences, largely due to – who got the government stimulus?
Hong Kong is looking at another property bubble as they have seen luxury property prices jump 40% in the last few months, with wealthy Chinese government officials spending lavish amounts of Chinese government stimulus money on the most expensive apartment in Asia, amongst other things. According to the Sydney Herald,
Hong Kong’s government is “very concerned” about the risk of an asset bubble developing although a bubble is not apparent yet, Financial Secretary John Tsang told legislators on Monday, referring to a surge in the city’s property prices this year.
Residential property prices have jumped 30 per cent this year, and price gains for luxury property have topped 40 per cent, as the city has drawn massive capital inflows – amounting to a record $US73 billion between October last year and November 13 this year – with foreign investors attracted by its low interest rates. Wealthy mainland Chinese have also been snapping up luxury Hong Kong apartments.
According to Asia Property Report (not exactly an unbiased source) there is “Massive interest from buyers at luxury developments throughout India.” This is somewhat at odds with the information on the Indian luxury real estate market over the last two years – with many developers switching to lower cost housing. But – no – all is now well in India apparently,
The luxury property market in India is booming as buyers wait in line for popular properties. As the market rebounds builders have started construction at projects that had previously been held at the planning stage. “There are buyers who were sitting on the fence since last year who have now decided to buy,” said Pranay Vakil, Chairman, Knight Frank India Private Limited. Lalit Kumar Jain, Chairman and Managing Director of Pune-based Kumar Builders added: “Our research has shown that there is a market for such houses and people are ready to pay for luxury.”
So – um – get ‘em while you still can before you get priced out of the market. 
Over in Las Vegas, the City Center development has now opened up three properties. The Las Vegas Sun says,
Since May 2006, when MGM Mirage imploded the Boardwalk Hotel on the Strip, Las Vegas residents have patiently waited to see what the state’s largest employer had in store for the 76 acres of prime real estate between Bellagio and Monte Carlo. They got their first look this week. Company executives cut ribbons and opened doors on three components of the massive CityCenter, a high-rise campus accented with striking architecture, public art, the newest technology and an emphasis on sustainability.
Massive amounts of money have been spent on this development and we certainly hope the market is turning.
Not looking like it from where I am standing and Toll Brothers reported yet another above-expectations loss for the fourth quarter, booking a $111.4 million loss, worse than both analysts expectations and last year’s losses. Still – the company was up beat and for the sixth quarter in a row claimed that the housing market has now bottomed out. This is an excerpt from the report:
Toll Brothers today reported a FY 2009 fourth-quarter net loss of $111.4 million, or $0.68 per share diluted. The loss included $85.5 million of non-cash pre-tax inventory write-downs, a pre-tax charge of $11.6 million due to early retirement of debt and a $14.6 million non-cash expense for deferred tax asset valuation allowances. Excluding write-downs and charges for early retirement of debt, FY 2009’s fourth quarter pre-tax loss was $9.6 million.
FY 2008’s fourth-quarter net loss was $78.8 million, or $0.49 per share diluted, which included $175.9 million of non-cash pre-tax inventory and other write-downs and an $11.1 million non-cash expense for deferred tax asset valuation allowances. FY 2008’s fourth-quarter pre-tax earnings, excluding inventory and other write-downs, were $69.9 million.
For its full fiscal year ended October 31, 2009, the Company reported a net loss of $755.8 million, or $4.68 per share diluted, which was impacted by non-cash pre-tax inventory and other write-downs totaling $476.7 million, a pre-tax charge of $13.7 million related to the early retirement of debt and a $458.3 million non-cash expense for deferred tax asset valuation allowances. Excluding inventory and other write-downs and charges for early retirement of debt, FY 2009’s full-year pre-tax loss was $6.1 million.
FY 2008’s full-year net loss was $297.8 million, or $1.88 per share diluted, which was impacted by non-cash pre-tax inventory and other write-downs totaling $848.9 million, a non-cash $24.1 million expense for deferred tax valuation allowances and $40.2 million of other pre-tax income attributable to net proceeds received from a condemnation judgment. FY 2008’s full-year pre-tax earnings were $341.9 million, excluding inventory and other write-downs and the condemnation proceeds. Full report here.
