Real estate sector is facing a worldwide slump during the current financial turmoil, with the properties in Asia Pacific being no exception. However, despite a dramatic change in the investing landscape, Asian economies have shown resilience. “The trend will see more traditional players shop for quality assets in major locations and investors will also be rebalancing portfolios to take advantage of better economic prospects in Asia,” according to the Emerging Trends in Real Estate Asia Pacific 2009 report, released by the Urban Land Institute and PricewaterhouseCoopers recently.
For 2009, therefore, the new mantra for real estate investing is “focus, focus, focus,” the report says, advising investors to be picky about markets and partners. The report also recommends not to stray from one’s area of expertise and geography.
But in terms of investments, which are the top 10 Asia Pacific property markets for 2009? Here goes the list:
Tokyo
In terms of investments, Tokyo is the leading city in the region. However, the local economy has slowed and exports are down. The city ranks first for investment and ninth for development prospects. However, Tokyo has the best risk rating throughout the Asia Pacific region.
Singapore
Singapore’s central gateway earned it the number two spot for investment, but seventh overall for development. The city has to reconcile itself to slower growth and less demand, but has the second best risk rating after Tokyo.
Hong Kong
Hong Kong moved up from fifth place for investment and sixth for development prospects. Demand is projected to slow from the rally of the past five years.
Bangalore
Cyber city Bangalore is a new kid on the block, which catapults from 12th to fourth place for investment and number one for development prospects.
Shanghai
Shanghai drops to fifth place for investment and eighth for development prospects.
Seoul
Seoul ranks sixth for investment and tenth for development prospects. Industrial growth will play a large role in keeping the real estate market healthy.
Mumbai continues to experience unprecedented growth and spirals into seventh place for investment and third for development prospects. But, the city is also ranked the third riskiest for investment.
Taipei
Taipei leaps from 16th into eighth position for investment and fifth-best for development opportunities. A strong office market with decreasing vacancies and increasing rents. All property sectors ranked as hold.
New Delhi
India’s capital city New Delhi rises to ninth place for investment and fourth for development. Current property investments earn a hold, but buy opportunities can be found in the hotel sector.
Kuala Lumpur
Kuala Lumpur slides into tenth position for investment prospects with tourism as its main economic driver.
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