Special Report: China moves to curb soaring house prices

    HONG KONG, June 21 (Xinhua) -- Standard & Poor's Rating Services said in a report released on Wednesday that real estate markets in Asia are set for another busy year as investors continue to target the region.

    The report, titled "Asia Property: Risks and Awards," said most of the key property markets in Asia are likely to be active over the near term on the back of solid economic growth, with Asia again expected to be one of the fastest-growing regions in the world.

    Asia's real estate markets are changing significantly due to the emergence of real estate investment trust (REITs), growing urbanization, the increasing presence of foreign institution investors, and the opening -up of the real estate sector in the Chinese mainland, said the report.

    The report said while long-term fundamental look encouraging, with plenty of development opportunities to meet rising demand, there is inherent volatility and structural deficiencies in the sector, said S&P's head of corporate ratings in Asia John Balley.

    He added that conditions can be extremely cyclical, with political risk, evolving market practices, and a danger of speculative excess in some markets.

    As for the Hong Kong property sector, the report said, the credit ratings of Hong Kong property companies are unlikely to change significantly over the near term, residential property prices should stay relatively flat for the rest of 2006 while investors are likely to shy away from REITs in the short term due to waning market interest.

    However, the report said, in the longer term, REITs is expected to become an important investment tool in Hong Kong. Enditem