The global financial crisis showed that many investors were operating in the dark in terms of the information they received about their real estate investments. Now they’re seeing the light. The calls are getting louder for the real estate industry in Asia to be more transparent, more standardized and more consistent in the way it reports information. Achieving those goals will require a lot of hard work. But a sea change may be inevitable.
From the Current Issue
Soon after opening up for foreign direct investments in real estate in 2005, India experienced a large inflow of capital focused on the real estate sector. Now that conditions have changed, is it worthwhile to re-evaluate making an allocation to Indian real estate?
Vietnam’s real estate market has intrigued foreign investors for years, given its compelling fundamentals. However, after being listed among the top emerging market real estate investments for several years, Vietnam’s investment image is currently tarnished due to concerns about macroeconomic stability, particularly the high interest rates now in place to combat inflation. Vietnam has struggled to control an overheating economy, and growth-related inflation will continue to be a challenge going forward, although fundamentals are still strong for the medium to longer term.
Some of the world’s smartest foreign investors are taking advantage of a one-in-20-year opportunity to gain significant access to the historically tightly held Australian property market. In the past 24 months, The Blackstone Group, Aviva Investors, LaSalle Investment Management, CLSA and Pramerica Real Estate Investors have made significant corporate and property acquisitions in Australia and, in doing so, committed to having dedicated property personnel based in Australia.