Feb 21, 2011

The speedy global economic recovery and fast-moving capital markets will create a demanding environment for property investors this year, said LaSalle Investment Management.

The multi-speed economic recovery will create a long, slow return to equilibrium in Japan, the Eurozone, the UK and the US, it said.

Large developing markets including China, Brazil and India, as well as developed countries, will see much higher levels of occupier demand, while low interest rates will push property prices for prime, fully-leased properties in the G-7 countries.

Meanwhile, the developed markets of Singapore, Hong Kong and Australia, as well as emerging markets, will earn strong returns through leasing and development.

Kenneth Tsang, Head of Asia Pacific Strategy at LaSalle, said, “Opportunities in Asia Pacific will remain broad-based in 2011 in the direct markets. As real estate market fundamental continue to improve, amidst a recovery capital market, there are markets offering attractive investment return for investors. Value, recovery, and growth markets exist within the region and offer a diverse investment landscape for core and opportunistic capital. Real estate debt will offer more opportunities as falling values have generated large gaps in the capital structure in Japan; lack of development finance will create more opportunities for operators with proven track records and strong bank relationships.”

With the better economic and property fundamentals across the Asia Pacific region, together with increased availability of debt and equity, the region will likely produce more investment flow this year compared to the previous years, said La Salle.

Domestic and international investors will be more active this year as deal flow increases, but the cost of debt will stay low, as many Asian countries import low US interest rates though currency pegs, it added.

Info courtesy -