Asia's real estate appears to have a mind of its own.
Despite issues in the region, notably China's trade woes, Asia's real estate has sustained a robust growth since last year. Hong Kong and Singapore, in particular, were of interest as Hong Kong's real estate marked the sale of "The Center," a single office block, for $5.2 billion. That was followed by the Mantra Group's sale of "serviced apartments" for a total of $940 million to hotel developer Accor.
The first quarter of 2018 produced record values for the rest of the Asian-Pacific region. The investment was recorded at a high of $40 billion, 22 percent higher than the last time investment reached heights such as this-in 2008. Last year was also a record year, but this year's first quarter sales were higher by about 34 percent, Financier Worldwide noted.
The drivers, according to reports, were a younger population that was beginning to exercise its buying power. While the Chinese population may be aging, the regions around it, India, Indonesia, and Vietnam-were growing younger and larger as well.
It is this outlook that has created a robust environment, said CBRE. It has raised the output of the market to 26 percent as the next couple of years arrive. Fundraising, as well as improved investor relations, is also to be thanked for the recent spate of a good investment that the Asia-Pacific region is currently enjoying, Real Assets pointed out.
CBRE has also released its forecast of where the "Next Wave of Capital Deployment" or investment is going to happen. Based on their observations, the regions of China, Japan, and Australia will be property hotspots in the next three years. These three have also been credited for 75 percent of a capital which had been gained through real estate sales and acquisitions.
There had been setbacks, of course, but minor ones at that. China's real estate suffered because of two things-an aging population as well as the newly-introduced policies that police spending. India, which has a renewed interest in real estate, is expected to benefit from this awareness as well as policies which aims to further develop real estate in the country.
With countries expected to avoid the trap of "immaturity and lack of transparency," investments in this region may soon grow enough to make it top in the world.
