Lots of money to be made in Asian real estate: Report
The
Straits Times | March 30, 2013
Rise of casinos,
Iskandar among the attractions
The
rise of casinos in Asia and of Iskandar Malaysia are two factors that should
encourage investors to keep placing their cash in high-yielding Asian real
estate.
That
is the assessment of Singapore-based real estate investment house Pacific Star
Group in its latest report on the sector's outlook.
The
firm also said structural shifts in industrial production will spur real estate
growth.
Pacific
Star specialises in managing funds, Reits and private equity, among other
assets.
In
the past 12 years, it has transacted US$12 billion (S$14.9 billion) of property
deals for clients.
It
said upscale casino resorts will propel the next phase of tourism growth in
Asia beyond Macau and Singapore.
Multibillion-dollar
integrated resorts are being planned in South Korea and the Philippines, and on
a smaller scale in Vietnam and Cambodia, said the report.
Casinos
could also be legalised in Japan and Taiwan.
With
the rise of China, Pacific Star said the shifting production model for quality
industrial and logistics sectors will present investors with interesting
options.
This
applies to production lines moving to inland China, Thailand and Vietnam, it
said.
Iskandar
Malaysia is another reason for investors to park their money in Asian real
estate.
Last
year, the Malaysian development received cumulative committed investments of
RM106 billion (S$43 billion), 6 per cent more than its target set in 2006.
The
report attributed Iskandar's success to government-backed companies, major
investors, its strategic proximity to Singapore, bilateral governmental support
and the active participation of developers.
Pacific
Star vice-president of research and strategic planning Lam Chern Woon said:
"It is now opportune for investors to cast the net wider beyond
traditional markets and sectors while riding on Asia's growth story.
"There
are opportunities... in new markets like Iskandar Malaysia, Jakarta and
Manila."
For
the office sector, Hong Kong and Singapore remain favourites for their sound
political fundamentals and business competitiveness, said the report.
Mr
Lam said: "Investors should also continue to keep an eye on quality assets
in the gateway markets of Hong Kong and Singapore where pricing may be contained
in the near term due to rental correction."
Martin Koh | 86666
944 | R020968Z
Sherry Tang |
9844 4400 | R020241C
Senior Sales
Director
DTZ Property
Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg
