By Nikki De Guzman:
The
Asia Pacific region reported an eight percent growth in invested stock
last year, outperforming both North America and Europe, according to a
DTZ report.
Emerging markets fuelled the region’s robust
performance, with China surpassing Japan as the region’s biggest market,
expanding by 15 percent.
“Asia Pacific continued to drive
growth in global invested stock in 2012, with China now the largest
regional market on the back of strong economic fundamentals,” said Kate
Barrow, Head of Asia Pacific Forecasting at DTZ. She added that the
region’s emerging markets performed well in 2012, with Hong Kong, Taiwan
and India experiencing healthy growth rates.
The report also
highlighted ongoing deleveraging across the region as private equity
surpassed private debt as the largest source of growth in invested
stock.
Meanwhile, commercial investment volumes remained
buoyant, as the proportion of inter-regional investment activity doubled
and transaction volumes (excluding land sales) jumped 21 percent.
Investment volumes increased significantly in Japan and Hong Kong at 17
percent and 40 percent respectively.
“Globally, liquidity has
returned to its long run 10-year average, while legacy debt issues
continue to subdue investment activity in Europe. In Asia Pacific, the
average liquidity ratio fell to three percent in 2012 on the back of
increasing stock and declining volumes in many markets,” DTZ said.
At the same time, Singapore is the world’s most liquid market with a
liquidity ratio of nine percent, while Japan and Australia saw below
average levels of liquidity.
“Given the current state of global
investment markets, property is emerging as a particularly attractive
asset class. For both new and returning investors in the markets, we
think that apart from the currently abundant relative value, market size
and liquidity are essential. You must be able to buy into and then
later sell out of a market,” said Hans Vrensen, Global Research Head at
DTZ.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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