City A.M. Reporter
GLOBAL real estate broker Savills yesterday said it expected its full-year performance to be in line with its expectations, as its European business continued to face challenging market conditions. <br /><br />Savills said greater-than-expected cost savings of £60m for the year had enabled it to continue investing in its business “without adversely affecting our performance expectations for the year”.<br /><br />Savills said its continental Europe and British commercial property operations had been challenged by low transaction volumes, particularly for prime-quality assets.<br /><br />The US commercial property market remained largely inactive, while in Asia Pacific -- especially Hong Kong and China -- transaction volumes had improved in the third quarter, driven by strong demand from investors.<br /><br />“Lately there are indications that this (Asia Pacific) lending-based rally may not be sustainable in the medium term,” Savills said. <br /><br />Savills’ British residential unit had performed strongly, driven by a recovery in the markets of London and the South East. In August, Savills posted a first-half underlying pre-tax profit of £2.5m from £19.2m a year earlier.