Certain megatrends will frame the investment environment for Asian property buyers for decades to come. That being the case, institutional property mavens say they will keep a close eye on Asian megatrends in the following categories: (1) demographics, (2) politics, (3) regional economic growth, (4) business sectors, (5) global macroeconomics and (6) environment.
As investors, we can only react appropriately if we understand the full nature of risk and opportunity. In our experience, a holistic lens provides an insightful risk-management tool and drives superior value.
The Australian property market continued to outperform against the broader market throughout 2016. The attractiveness of yields in the sector and the strength of valuations have largely supported the performance of the sector.
In early 2016, investors had two major concerns about Asia Pacific real estate: (1) the spillover effects of China’s economic slowdown and (2) the impact of interest rate increases in the United States. Both concerns have receded over the course of the year, while the sector has continued to grow in breadth and depth.
The Wikipedia entry for "Institutional real estate" has been eliminated and replaced with a new entry called "Private equity real estate". The fact is, private equity real estate, as its name implies, refers only to real estate in the private equity markets and has nothing to do with the type of investor making the investment. Rather, it has to do with the quadrant in which the investor is investing.
The fourth annual Institutional Real Estate Allocations Monitor, from Hodes Weill & Associates and Cornell University’s Baker Programme in Real Estate, shows institutional investors around the world are continuing to raise their target allocations to real estate and are on track to break the 10 percent barrier next year.
Along with global property stocks, Asia Pacific property stocks experienced a tough October as the property sector continued to be dragged down by heightened interest-rate concerns as well as subsequent weak US performance resulting from a rotation away from yield-orientated securities.