Tuesday, April 28, 2009

S&P Global Property Index falls 19.8% in Q1

(LONDON) Standard & Poor's Global Property Index tumbled by a fifth in the first quarter of 2009, after a rally in emerging market real estate stocks failed to offset a lingering depression in more mature markets.

According to a report released yesterday, the S&P Global Property Index fell 19.8 per cent between January and March, as whispers of a property market revival were drowned out by worldwide recession worries. The S&P Developed Property Index, a large constituent of the global index, dropped 22.2 per cent on the back of big market declines in North America. Europe and Asia Pacific suffered falls of 18.2 and 15.6 per cent, respectively. Austrian property stocks posted an extraordinary quarterly return of 20.3 per cent, largely due to volatility in the share price of Immoeast AG , whose price has soared 123 per cent in Q1.

The picture was somewhat healthier in emerging markets, with the S&P Emerging Property Index posting a 7.8 per cent return. Israel was one of the strongest performers in this sector with a 33 per cent return. 'It has been a tough first quarter, with the comeback in emerging market indices providing little relief overall,' said Alka Banerjee, vice-president of S&P Index Services. -- Reuters

Source: Business Times, 28 April 2009

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