Global real estate investors should focus on long-term investment value after the global market recovery, said new research from PRUPIM Singapore, adding that Asia Pacific’s real estate markets will continue to take advantage of the strong economic performance in the region.
All three regions offer opportunities but undervalued assets are at their lowest level since the financial crisis, said PRUPIM Singapore, in its latest international property perspective report on the real estate investment climate in Asia.
“The Asia Pacific economy, driven by strong domestic demand, robust export growth and resilient capital investment, continues to forge ahead, relative to the economies of North America and Europe. However, there are increasing signs of monetary tightening in the region which are designed to tame the build-up of inflationary pressures and position the region’s economies on a sustainable long-term growth trajectory,” said Cuong Nguyen, Senior Research Analyst at PRUPIM Singapore.
Market fundamentals continued to strengthen throughout the key commercial property sectors, said the report, adding that Singapore, Melbourne and Hong Kong were clear leaders, with robust a take-up towards the end of 2010.
Investors are increasingly discerning about the risks they take, both in terms of assets and markets, said PRUPIM Singapore.
When it comes to investment strategy, the company favours markets gaining from sustainable economic growth, longer term positive structural changes and positive demographics. PRUPIM Singapore also sees opportunities in various emerging and developed markets across the region.