China, Hong Kong to drive Asia sales

Global real estate broker Savills expects its sales in Asia to grow 20 per cent to 30 per cent in 2010, with strong momentum in China and Hong Kong, the company's China chief executive said.

Asia, which represented 35 per cent to 45 per cent of the London-listed firm's global sales, would be a major growth driver for Savills as property markets worldwide gradually gathered steam after the deep downturn, China Chief Executive Randall Hall said yesterday.

"Twenty to 30 per cent growth is good. Historically, it has been about 10 per cent," Hall told Reuters. "We will be happy if a market shows 10 per cent growth (outside Asia this year)."

Savills was looking to acquire two to three targets each in China and Taiwan, including privately-run securities and cleaning services companies, Hall said, adding that each deal was worth about $12 million (Dh44.04m).

"We are looking forward to M&A opportunities. It is the priority of my focus this year," he said.

Last year's surges in China real estate prices would not be repeated this year, Hall said, adding that he was not worried about the market.

"The 40 per cent spike in luxury residential prices and 20 per cent to 25 per cent price rise for non-luxury housing last year will not be sustained. We believe the Chinese government is very good at controlling bubbles," he added. China has pledged not to let foreign speculative investment affect its property market.

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