Most institutional investors stick to Tier 1 cities in developing Asia Pacific countries. After all, these are generally the largest and most liquid, mature and transparent cities in their countries. But more investors are going beyond the first tier, searching for diversification and higher returns in Tier 2 and Tier 3 cities.
From the Current Issue
The real estate market in South Korea is undergoing a vast transformation in ownership, investment and usage, leading to compelling opportunities that were not historically available for real estate investors.
Australia is no longer the “Terra Australis Incognita”, or “unknown land of the south”. It is very much on the map. The country has now gone an incredible 100 quarters — 25 years — without a recession (defined as two consecutive down quarters). But will Australia’s economy retain its titanium coating?
With rapid economic development in many parts of Asia, urbanisation has been a strong theme in the region. By 2050, two-thirds of the Asia Pacific population is expected to live in cities, up from 43 percent in 2010. With this in mind, there are potential long-term strategic market exposure and impact decisions for investors in the region to consider.
It would be easy to let Brexit take over, but Europe is a big place, and plenty else is happening on the continent. The principal worry, though, is the impact of Brexit on investor sentiment — the switch from risk-on to risk-off — may now make itself felt more widely across continental Europe and farther afield.
GIC, Singapore's sovereign wealth fund, in partnership with UK-based Global Student Accommodation, has acquired a 7,150-bed UK student-housing portfolio from investment funds managed by Oaktree Capital Management.
During September, Asia Pacific property stocks fared modestly better than global property stocks, which were dragged down by weak US performance resulting from a rotation away from yield-oriented securities. In general, the magnitude and direction of central-bank policies around the globe have continued to dominate market moves.