Asia's Rising Boom

When US consular officials in Mumbai bought a chunkto put a lid on the market, in part by seeking to curb
of real estate for a new building in the city's thenbank lending to the sector.
cheaper midtown area four years ago, they thoughtBut few believe they will be able to achieve much
their troubles were finally over.more than a dampening of the worst excesses of a
The location of their existing premises in exclusive butphenomenon some see running for years.
crowded south Mumbai meant they had to pay heavily"We've got asset booms around the region and it's
to house staff within a reasonable commuting distancepretty much uniform. There are very few countries
from the office.where you don't see it, whether it's in equities or in the
What they did not count on, however, was Asia'sproperty market," says Tim Condon, chief economist
great property boom.at ING in Singapore.
Midtown land prices in India's financial capital beganIt is not just the parts of the region undergoing industrial
rising steeply and, with top-end rents doubling annually,development that are experiencing the surge.
the consulate faces the same problem even before itsJones Lang LaSalle, the property consultancy,
new offices are built.estimates that Tokyo prime office space rose 63 per
"There are rental apartments which we hadcent in value last year while residential rental prices
considered premium at Rs300,000 [$6,800] a month -were up 28 per cent.
these now go for Rs600,000," says Anjeli Hazari, aThis provides further evidence that Japan is putting
Mumbai estate agent catering to expatriates.behind it the long period in the doldrums that followed
It's a very erratic, very volatile market." Across largethe bursting of the country's 1980s asset bubble.
parts of Asia, the same pattern is being repeated.Japanese property stocks this month hit levels not
The rapid growth of the region's economies, led byseen since the 1980s and shares in Mitsui Fudosan, the
China and India, is inflating property prices.leading developer, surpassed a lifetime high.
The trend has sent national regulators scrambling to try