According to the Emerging Trends in Real Estate® Asia Pacific 2016 survey that published by Urban Land Institute (ULI) and PwC jointly, real estate activity will concentrate in the region’s most developed and liquid markets of Asia next year.
Japan and Australia remain the favorite countries for investment and development, with Tokyo, Sydney, Melbourne and Osaka taking four of the top five spots for promising markets in the Asia Pacific region.
Emerging Trends, which is being released at a series of events across Asia over the next several weeks, provides an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is based on the opinions of 343 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
The top five investment and development markets for 2016;
1-TOKYO : Tokyo “ticks all the boxes” for investors given its status as Asia’s top gateway city, and the market with the greatest depth and liquidity.
2-SYDNEY : Sydney is a draw for institutional investors seeking core office properties. The shortage of those assets and an influx of new investors competing for the properties, coupled with a depreciated local currency, is resulting in strong property yields.
3-MELBOURNE : Melbourne is perceived as offering a similar environment to Sydney. However, even with double-digit price increases in 2015, properties in the city remain more affordable than those in Sydney, mainly because more land is available for an expansion of the central business district (CBD).
4-OSAKA : Yields for residential properties are particularly strong, although commercial assets are also performing well. The market’s impressive growth “marks the end of a long period of oversupply that plagued the city for years,” notes the report.
5-HO CHI MINH CITY : Improved market access for foreigners is drawing outside investors, who could significantly boost purchases of both residential and commercial properties.