Giving reasons for the decline in realty rates, the report says that this period has been dominated by falling stock markets, rapidly declining currencies, rising interest rates and an increasing number of bankruptcies. Notable is the rapidity of decline, from an average GDP growth between 1993 and 1996 for Asian countries, excluding Japan, of more than 7 per cent per annum, to an anticipated 1.3 per cent growth rate for 1998.

While the impact of this downturn has been patchy, affecting some countries more severely than others, the whole region has been affected and the forecast isnot optimistic.

About India, the report says that the abolition of the Urban Land Ceiling (Regulation) Act, which had restricted supply of vacant land, is expected to increase the supply of developable land around the country over a medium- to long-term period. Over the short term, it is anticipated that most regional markets will record falling rents and values over the next 8-10 months up to June 1999.

The residential market in Mumbai is likely to weaken further over the medium- to long-term due to oversupply. The report mentions that if potential amendments to legislations such as the Rent Control Act proceed, further declines in value could occur as more landlords offer their properties to the leasing market. The northern suburbs of Bandra, Andheri and Kandivali suffered a much greater decline in capital values of around 10 per cent, due to additional supply in the region. However, during the past year, limited new supply has resulted in only marginal declines in capital and rental values in the primeresidential areas of Malabar Hill and Napean Sea Road.

For the Delhi market, the report forecasts a decline due to depressed economic conditions in the region. Falls of 5 per cent in capital values for prime residential properties are expected till at least June 1999. Over the past year, depressed market conditions have prevailed, points out the report.

Bangalore has fared no better and the market is anticipated to decline due to increased supply. One and a half million square feet of residential space is due for completion over the next two years and declines of 10 per cent in both rents and values are likely by June 1999. This follows a fall in capital values for prime apartments of approximately 10 per cent in the past year. Bangalore's infrastructure problems, coupled with oversupply, are increasing the negative attitude towards residential investments.

The situation in South East Asia is no better with factors such as economic recession coming into play. The falling number of expatriates, jobuncertainties, and restructuring by multinationals are contributing to the declining values.

The Bangkok residential market is likely to decline in 1999 as demand diminishes, with capital values falling by 7 per cent and rentals decreasing by 11 per cent. Rentals for the best quality apartments and houses in Bangkok are expected to remain stable, with some areas expecting increases, due to demand currently outweighing supply for quality expatriate housing.

On the other hand, Manila is likely to suffer over the next year due to a stock increase of 25 per cent and a decline in demand due to the falling number of expatriates. In Makati and Ortigas, 2,400 new apartments are expected to be completed by the end of 1998. Although no new projects have commenced in the past year, the rise in stock at a time of declining demand is likely to result in both rents and prices declining by 10 per cent in the year to June 1999.

The Singapore residential market is more affected by the regional economic crisis than anyother factor. As the economy slows and job uncertainty increases, buyers are more cautious in their financial commitments. To increase sales, developers are pricing their units more competitively. In the first half of 1998, several residential projects were launched for sale at prices that were about 15 per cent below last year's levels for similar properties. The take-up for these developments has been encouraging, confirming that the underlying demand is strong, but price-sensitive.

On an average, values of prime apartments in Singapore fell by 12 per cent in the first half of 1998, says the Colliers Jardine report. Weakening market sentiment and a large oversupply will lead to values declining by 20 per cent over the next 12 months.

In Kuala Lumpur, the residential market is likely to be affected by Malaysia's tight liquidity restrictions. Genuine buyers will continue to expect some flexible payment structures, as market liquidity is tight and demand is likely to be restricted by the caution offinancial institutions in extending loans. Rents and capital values of condominiums are anticipated to drop by 10 per cent over the 8-10 months to June 1999.

For those planning holidays in the South East Asia region, there could be no better time than now as currencies all over the region have taken a beating. For instance, the report points out, while the published room tariffs in Manila have been maintained at 1997 levels, effective rates have fallen at an average of 6 per cent in the first half of 1998. Room rates are expected to decline by a further 5-10 per cent in the year to June 1999.

In Kuala Lumpur, the average occupancy rate is unlikely to exceed 50 per cent for the year to June 1999, if the present weak economic scenario continues around the Asian region. Average room rates could decline by around 10 per cent by June 1999.

Despite the decline in prices, the buyer interest has at best been lukewarm. Giving reasons for this, realty experts say that the market is falling, but it has notactually bottomed out. With uncertainty over the prices, genuine buyers are delaying their investment decisions. So, overall, the period is not witnessing any significant buyer interest and transactions are at an all-time low.