Emerging Trends in Real Estate® Asia Pacific 2019 01 January 2019
After nine years of relentless expansion, Asia’s real estate markets are facing rising headwinds.
An impending trade war, rising interest rates, tighter access to credit, and buyer fatigue at sky-high prices for both commercial and residential properties are causing investors to question whether the long bull cycle may be reaching its peak: “The market’s wobbling like a jelly on a plate,” as one investor put it. “We’re at historic highs across the board.”
That said, market fundamentals in 2018 remain robust.
After nine years of relentless expansion, Asia’s real estate markets are facing rising headwinds.
An impending trade war, rising interest rates, tighter access to credit, and buyer fatigue at sky-high prices for both commercial and residential properties are causing investors to question whether the long bull cycle may be reaching its peak: “The market’s wobbling like a jelly on a plate,” as one investor put it. “We’re at historic highs across the board.”
That said, market fundamentals in 2018 remain robust. Transactions for the year are at record levels and pricing is strong, sustained by ever-growing volumes of institutional capital piling up in Asia’s biggest economies.
For now, then, the music continues, and although some investors are looking to sell down their holdings and reposition, the sheer weight of capital looking to find a home in real estate means that prices may not fall significantly even if other indicators turn south.
Investors must consider more varied strategies than in the past to get money into the market.
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