"Development is now a preferred way to invest capital in the Asia Pacific region, and many investors believe that it offers better risk-adjusted returns than core; it also allows investors to acquire new, high-quality assets on their own terms, albeit with higher risks.
...Investors rank Osaka, Shanghai, Tokyo, Singapore, and Taipei as the top five investment markets; investors are definitely looking to buy in these cities. Strong development markets include Bangalore, Ho Chi Minh City, and Mumbai, and these cities also are high on investors' buy lists. Other solid buy cities include Guangzhou, Bangkok, Beijing, Seoul, New Delhi, and Kuala Lumpur. The relatively mature markets of Melbourne, Hong Kong, and Sydney are viewed as hold markets. Manila and Jakarta are the lowest-ranked cities in the survey."
"...The office sector remains the preferred sector for investors, as it offers the largest pool of high-quality, high-value assets; however, it is not an easy sector to invest in as it is very competitive and prices are quite high. Hotel/resort, retail, and industrial/distribution properties also offer attractive prospects."
A joint undertaking of the Urban Land Institute (ULI) and PricewaterhouseCoopers, Emerging Trends in Real EstateÂ® Asia Pacific is a trends and forecast publication launched this year. The report provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, property sectors, metropolitan areas, and other real estate issues.
[Editor's note: The article and report are available only to ULI members, or from the ULI bookstore.]
Thanks to Urban Land Institute Newsletter