The Straits Times
Sunday, Dec 16, 2012
Investors in Asia generally have a positive outlook on the real estate market next year with Singapore on the investment radar for many, a survey has found.
The majority - 70 per cent - of Asian investors said they were likely to expand their property portfolio and lift their level of investment in the region, according to the Colliers 2013 Global Investor Sentiment survey released yesterday.
About 41 per cent of respondents were also looking to achieve returns above 20 per cent.
Asia and Eastern Europe were the only two regions where targeted returns were above 20 per cent for the majority of those polled.
However, Asian investors cited the difficulty of raising equity as a major concern.
This is followed by a lack of property on the market and uncertainty over the economic situation.
The region is also the most attractive to Asian investors with the regional outlook turning even more positive when a long-term view is taken.
Most Asian investors - or 68 per cent - believe that market conditions will improve in the next five years with only 12 per cent believing that investment conditions will decline.
Shanghai, Hong Kong, Singapore, Tokyo and Beijing were the top five cities that investors said they would focus their investments on in future.
About a quarter of Asian investors said they will set their sights on office developments in the Central Business District or other urban locations over the next six months, while 17 per cent intended to make "opportunistic investments".