Singapore and Shanghai are among the Asian Cities considered to be the best property investment destinations, according to an industry survey.
Singapore topped the rankings due to its strong economic growth and brisk business activity in the hi-tech and financial industries, according to a survey which was jointly published by the Urban Land Institute and PricewaterhouseCoopers.
Shanghai, Mumbai and Hong Kong were the next three best Asian cities for property investment.
The survey was based on the responses of over 280 property professionals, including developers, executives, brokers and investors.
Shanghai slipped to second place, from the first spot last year, due to sharp property price increases that dampened investors’ interest.
Although the survey was conducted before Hong Kong implemented its toughest tightening measures to curb property prices, it would not affect its final standing, said some executives who were involved in the survey.
“It’s a concern, and certainly affects residential developers, but I don’t think it will change the rankings,” said Stephen Blank, senior fellow at the Urban Land Institute. “Residential doesn’t drive the market.”
He noted that it was possible that governments in Asia would implement more tightening measures to curb the market; however, economic strength would be the fundamental factor that drives property investment decisions, particularly in the commercial property sector.
“There is a great feeling of uncertainty because it is very hard to know what the potential changes in regulations are going to be,” said Mr. Blank. “Regulations come and go. In Asia, governments turn things on and turn things off very quickly.”
Meanwhile, many investors are least keen on investing in Auckland, Osaka, Bangkok and Manila due to the oversupply of office space and stagnant commercial rents, according to the survey that looked at 20 Asian cities.