2015 ASIA PACIFIC PROPERTY TRENDS
According to an on-line report, the 2014 Asia Pacific real estate trend was marked with an increased demand in the occupier and investment property markets. With the continued flow in capital during said year, demand for said markets, which were not seen in previous years, began to emerge.
With its huge global market influence and vast resources, China sustained its record as the largest source of outbound real estate investments targeting all regions across Asia-Pacific, while Singapore maintained its magnet as the top choice for real estate investments in the ASEAN region.
In 2015, despite China’s economic slowdown and the weakening of many global economies, the Asia Pacific property market, with supply finally able to meet strong demand, aims for more transactions this year and in the coming years.
This year’s Asian real estate market projection is boosted by the many structural changes in the industry such as technological advancements. The introduction of on-line sales and establishment of more efficient and faster logistics will play significant roles in attaining industry targets. However, there will be a shift to non-core assets like warehousing facilities from the core-assets, where competition is expected to even tighten up this year as investors seek higher yield investment properties.
Promising Office-Leasing Market
2015 will be a promising year for property developers involved in the office-leasing markets as this is expected to remain vibrant this year. With most Asian economies hardly affected by the weakening of some European markets and China’s slowdown, most of Asia’s sustained growth will help boost investor confidence on a wide range of property developments in the region.
The industrial real estate outlook for Asia in 2015 is positive as well, as the logistics sector is expected to post a significant growth this year and in the coming years because of the globalization of the world market.
The sustained growth of most of Asia’s economies is also seen as a positive sign for the office property markets in Asia, while the retail market (residential) is expected to benefit from the increased spending capabilities of the younger generation in Asia and the growing middle class families in the region. Urbanization in the region will also continue to drive real estate sales up.
Top Property Investment Havens in the Asia Pacific Region
In a separate on-line report on the emerging 2015 property trends in the Asia Pacific Region, boosted by the continuing flow of capital from various sources all over the world, despite the downturn in some major economies, the following cities will sustain its appeal for property investors looking for high yield property investments in 2015.
Tokyo – For its popularity as a property investment haven because of its government’s massive economic stimulus plan that resulted in increased property purchases in anticipation of rising property prices, Tokyo emerged as the top choice for investment and development in the Asia Pacific region. Tokyo’s easing of its credit made room for markets to run. Moreover, Tokyo’s attraction is not only anchored on its eased credit, but its good investment yield prospects as well, because of its status as a gateway city to Japan. Japan properties have also low perceived levels of risk.
Jakarta – The city ranked second for investment and development because of its booming economy and its recorded strong asset price growth over the years. Moreover, real estate prices in Jakarta are generally lower than other major Asian cities.
Osaka – Ranked third for investment and fourth for development, Osaka is capturing the spillover from the fierce competition for assets in Tokyo. Many investors are being pushed into Japan’s secondary markets such as Osaka, resulting in the reduction of the city’s property over supply, particularly in the office sector.
Sydney – Ranked fourth for investment and third for development, Sydney’s high property yields and ripe economy are drawing investors from all over the world. Its combined wholesale and Australia’s pension funds are helping boost property sales in the city. Conversions of old office stocks into residential units is also catching developer interest as demand for more residential units is seen to grow this year.
Melbourne – Ranked fifth in investment and fifth for development) – Melbourne’s property magnet is seen as equal as that of Sydney. An abundance of capital seeking investments in Melbourne has been seen because of its attractive yields.