Singapore has been named the best property investment market in Asia Pacific for next year, according to an Emerging Trends report jointly published by the Urban Land Institute (ULI) and PwC.
Rounding out the list of the five most favoured investment markets are Shanghai, Mumbai, New Delhi and Hong Kong.
The report is optimistic on the overall prospects for the Asia Pacific property industry. It said the “cloud has been lifted” from Asia Pacific markets, with most of the Asian countries having a more promising fiscal outlook than the US or Europe.
“Many, if not most, Asian economies have rebounded to pre-crisis levels, and real estate markets, although mostly slower, are headed toward some semblance of normalcy,” said C.Y. Leung, chairman of ULI Asia Pacific. “The distress that was so widely predicted a year ago for most of the region’s largest markets has by and large failed to materialise.”
Steady activity by buyers indicates that property markets in Asia “are strong enough to grow into the high expectations current pricing trends imply”, especially due to the shortage of both residential and commercial properties persisting in many areas.
Among Asian markets, Singapore emerged as the region’s top property investment destination for next year.
“Singapore has jumped from fourth place in 2010 to take top spot in 2011. This growth is mainly attributed to foreign awareness of the prospects that Singapore has to offer; and its healthy rebound from the global financial crisis. But domestic capital involvement seems to have increased as well,” said David Sandison, Tax Partner of PwC Singapore.
In general, survey participants said Asia is showing the most growth when it comes to the property sector. “The area’s economic expansion should be the key driver to help propel commercial real estate investments and developments across the region,” Emerging Trends says. “The real estate market is back, fund raising is strong in Asia, local banks are providing financing, and capital is everywhere.”