Lend to me: Access to debt has improved for many Asia Pacific real estate markets
The lending environment across the Asia Pacific region remains relatively positive, with improvement seen in most markets during the past year. Access to debt has improved in a number of markets, and lending margins have for the most part sharpened. Banks continue to demonstrate an appetite for providing senior debt against quality assets, although with conservative loan to values (less than 60 percent) on typical three- to five-year terms.
Whilst debt funding in the Asia Pacific region lacks the depth of other markets, banks remain mostly willing and well positioned to originate new loans and grow their portfolios. Domestic and regional banks have done much of the work to fill the void following the departure of European banks as a result of the global financial crisis, although funding gaps for higher-risk propositions remain in most markets. Furthermore, lenders across the region are prepared to consider a number of options for impaired loans, with many favouring an ex