Commercial real estate markets in the Asia-Pacific region have been delivering strong returns for their investors in recent years. Thailand Business reported that the average annual returns in these major office markets had a value between 5% and 20% per year during the 2016-2018 period. In comparison, New York and London had relatively low single-digit returns during the same period.
The values notwithstanding, currency movements are also important when considered for inter-regional investors. These movements are meant to be analyzed when diversifying into Asia-Pacific real estate markets. With the different currencies passing through the region, this brings a high risk of volatility too, compared to the same markets found in Europe and the Americas.
Comparison is good. It would also show how market returns in local currency fare against foreign currency-adjusted returns. It also demonstrates the difference between "unhedged" performances and how these affect investments to investors coming from different parts of the world.
Elsewhere in the world, in the US, the money transfer firm TransferWise has launched a Mastercard debit card with an accompanying TransferWise Borderless multicurrency account. The card, according to PYMNTS.com, will work without balance limits. It will also accommodate more than 40 currencies and conversion fees are to be in line with different exchange rates that are current.
CEO Kristo Kaarmann said that their goal was to offer bank details for every country in the world using only one form of payment or one account. The goal is to become the world's first global account, and to offer it with five of the world's biggest currencies already available. The 40-currency debit card completes the package, which will initially be released in the US.
Clients from the US, UK, Australia, New Zealand, and Europe will be able to get details about their international bank as well as routing and account numbers. At the same time, the card will also push notifications through Transferwise's mobile app. It will also summarize transaction details through these notifications and tie-up with digital wallets Apple Pay, Google Pay, and Samsung Pay.
With the global currency scene already happening as it is, JLL is looking at total returns in most Asia Pacific real estate markets to be more attractive to international investors looking for assets in the next three years.
A three-year timeline forecasted annual total returns dominated in local currency coming from Singapore, followed by various Tier 1 cities in China as well as India.
