Asia’s resilient real estate market braces itself for market correction
While the success of Asia Pacific governments in containing the spread of COVID-19 has helped limit its impact on local real estate markets, there are growing concerns that a correction may be on the cards next year, according to the 2021 Emerging Trends in Real Estate Asia Pacific report. The 15th edition of the regional real estate forecast report is jointly published by the Urban Land Institute (ULI) — the world’s oldest and largest network of cross-disciplinary real estate and land-use experts — and PwC.
The report names three markets where stress seems likely to surface. Firstly China, where a liquidity squeeze is creating bank financing challenges for smaller developers. Secondly India, where the implosion of local nonbank finance companies has created opportunities for foreign private equity funds. And lastly Australia, where the economic impact has been most acute and greater market transparency is likely to open up more buying prospects.