Australia, Japan and China are the solid choices
Over the next 12 months, global cross-border investors in Asia-Pacific are expected to maintain their confidence in the region, despite some economic concerns, per the latest ‘Global Investor Outlook Report 2016’ from Colliers International.
Among the top priority markets in the region are Tokyo, Sydney and Melbourne, based on the responses of some 600 global investors who participated in the Colliers survey.
Tokyo’s high liquidity puts it in the same league as other favourite gateway cities like London and New York. A large volume of real estate deals involve office assets.
In Southeast Asia, the most investable city is Singapore, placing sixth in the top target cities for overseas real estate investors.
More: The winners and losers in ASEAN real estate in 2015
Majority of Asia-based investors (91 percent) intend to commit to APAC through the course of the year, with primary focus on CBD offices (62 percent). Less than a third of surveyed investors preferred the residential (31 percent) and hospitality (28 percent) sectors.
Analysts at Colliers expect that investment levels from last year were likely to remain the same. As much as USD40.2 billion in transactions across all asset classes was reported in 2015.
Economic difficulties in China and Australia may have minimal impact in APAC markets as Asia-based and offshore investors continue to expand their property portfolios. While the slowdown in China resulted in muted market, Tier 1 cities in on the Mainland, like Beijing and Shanghai, plus Hong Kong will continue to thrive, although investors will be taking a more cautious approach.
More: Emerging market predictions in 2016 from Lamudi’s global co-founder
The report also stated that while joint ventures (JV) are increasingly becoming more popular investment strategies around the world, only 19 percent of investors in Asia intend to go this route, with 53 percent of survey respondents preferring direct investments without the use of investment vehicles, partnerships or funds.
Colliers said the lowering cost of debt would be a main driver of investment activity in APAC, while more motivated sellers would create more varied opportunities for investment.
Source : property-report.com
Read more…Cross-border investors in APAC prefer liquid markets in 2016
