Asia provides opportunities for better relative returns on property than Europe and the US, according to a latest report released by the Asia Pacific Real Estate Association (APREA), which represents and promotes the regional property sector.
Written by Prof Graeme Newell of the University of Western Sydney, the report is considered the most comprehensive study conducted on the benefits of an allocation to Asian property for institutional investors.
“Asia accounts for over 23 percent of the global real estate markets, with this market share expected to increase to 34 percent by 2020. This increased share will be driven by economic growth in the Asian emerging markets, as well as the economic stature of the developed markets of Japan, Hong Kong and Singapore,” said Prof Newell.
He added that Asian property markets have been a major source of global real estate transactions in recent years. This has led to enhanced stature and maturity of the Asian property markets for both local and international property investors.
The APREA report will serve as a major catalyst for future property investments in Asia. Major benefits are seen at all levels for the property industry in the region over the next few years.
“The implications of APREA’s report are that there are considerable opportunities for the real estate industry in Asia, at all levels, as institutional investors globally recognise the increasingly important role and benefits of Asian real estate in their portfolios,” said Peter Mitchell, Chief Executive Officer of APREA.
Meanwhile, APREA also announced the winners of the APREA Best Practices Awards 2011, namely, CapitaMall Trust (mature markets category) and Axis Real Estate Investment Trust (emerging markets category).
In a statement, the association noted that the groups were chosen for successfully adopting the recommendations in the APREA Best Practices Handbook in the areas of accounting & financial reporting, market disclosures, property valuation, corporate governance and portfolio performance reporting.
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