Who dares wins, realtor says (hktdc.com)


	IP Global founder Tim Murphy is building a global business from his Hong Kong base

	The rooftop deck at The Great Republic Lofts has views over downtown LA

The turmoil in global financial markets and general concerns over property values in the United States have created low-cost opportunities for wily investors seeking "credit crunch-resilient property hotspots," according to Tim Murphy, founder and Managing Director of real estate agency IP Global.

IP Global was established in Hong Kong in 2005, sourcing property investments in emerging and recovering markets. Since then, it has conducted more than US$300 million in property transactions, opened branch offices in Singapore and London and launched a property management division, Complete. There are plans to open a New York office in January 2009, and potentially, Dubai later next year.

Mr Murphy explained "credit crunch-resilient" locations as those with a combination of strong demographics and economic fundamentals, such as population and employment levels, in areas where land for development is limited. "Developers with batches of high-end units are becoming keen to move them on, so that they can repay loans and begin funding new projects. As a result, prices are coming down," he said.

He cited Los Angeles, California, as an example. "We are seeing property prices in LA that are up to 20 per cent down on last year's prices, and those that invest now will be able to snap up quality developments for bargain prices. Investors who research well will find some cities have strong potential to rebound from the recession imminently."

Prices down 30 per cent

Mr Murphy believes he is the first Hong Kong realtor to offer distressed US property for sale. Currently, IP Global is marketing The Great Republic Lofts in downtown LA, a new residential development in an iconic historic building. Prices range from US$328,000 to $484,000, which Mr Murphy said is, on average, 30 per cent below the price first asked when the development was marketed in June 2007.

For those who might feel reluctant to invest now, Mr Murphy countered that the US property market had tumbled almost a year before the equities-financial market began to decline, so it had already dropped significantly, especially in Los Angeles, Las Vegas and other cities.

"With an increasing attitude towards renting as a means to save cash during the downturn, investors can be assured that there should be steady cash-flow coming into their investments. Other asset classes have taken a beating in recent months and investors have rushed to the US dollar as a ‘flight to safety,' but savvy investors should look towards real estate for solid, long-term, risk-adjusted returns and should not be deterred by current headlines from making sound investment decisions."

Services in demand

When IP Global started, it filled an immediate need. "Many of the Hong Kong local and expatriate community are cash-rich and time-poor, resulting in strong demand for the service that we offer, namely, researching, sourcing, financing and managing properties in hard-to-access markets at discounted prices," Mr Murphy said.

"We have recruited well but not excessively, and stayed small enough to adapt quickly to market changes. We have conducted our business with integrity and hard work, which has allowed us to build a strong network in small communities like Hong Kong and Singapore, where reputation is of utmost importance."

Ideal growth platform

Hong Kong was the ideal location to launch the business, he added.

"Asia is a thriving region and Hong Kong sits on the doorstep of the world's second largest economy, which in turn bolsters the financially-focused Hong Kong economy. Within Asia, Hong Kong sits in good proximity to other regional hubs such as Singapore, Tokyo, Kuala Lumpur and Jakarta, and also has good transport links to further afield, such as the Middle East, Europe and America, which facilitates both distribution and property sourcing. Hong Kong is an ideal platform for our company due to its fast pace and flexibility. There is a large pool of talented recruits and we have easy access to the rest of the region and further afield."