Fundamentally Yours: Asia’s Numbers Beckon Property Investors, but Should They Heed the Call?
Asia is the only part of the world that saw an increase in the size of its institutional real estate stock last year. It’s also the place many investors consider the best investment bet for years to come, thanks to its solid fundamentals and good growth potential. But while the data looks attractive on paper, doing business in Asia is another thing entirely. What do the property investment professionals who crunch the numbers consider the region’s most attractive markets? And what are the pitfalls of investing in Asia?
The numbers weren’t pretty anywhere on the planet during the global financial crisis. But the Great Recession came and went in a hurry in Asia and has had little of the overhang that’s so very evident in North America and Europe.
That means the figures often virtually dance off the page in Asia. China’s gross domestic product is running at an annualized 11.9 percent in the first quarter and 10.3 percent in the second — and anything