Property investors in Asia have got a positive outlook for the region’s property market in 2013, with 70 percent likely to expand their investment and property portfolio, according to Colliers International’s Global Investor Sentiment Survey 2012.
The survey also revealed that 79 percent of respondents prefer to invest in Asia for the next 12 months, citing Shanghai, Hong Kong, Singapore, Tokyo and Beijing as the top five most preferred locations.
Around 41 percent of respondents aim to achieve internal rate of returns (IRR) of over 20 percent, the report added.
“For Singapore, the cyclical characteristics of the real estate market here acts as a magnet to investors looking for flight to quality,” said Dennis Yeo, Managing Director of Colliers International in Asia.
“Currently, and for the better half of 2012, there is a price gap between the buyers and sellers. The tipping point for more transactions may be towards the later part of 2013 and 2014, when the economy continues to slow, demand weakens and supply comes on stream with completion of sites that were released in 2011 and 2012.”
Investment over the next six months is expected to flow into the CBD and urban locations (25 percent), followed by opportunistic investments (17 percent).
68 percent of investors also expect market conditions in Asia to improve within the next five years.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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