Foreign capital flowing into real estate in AsiaJune 19th, 2008 - 4:34 pm ICT by IANS
Singapore, June 19 (DPA) The inflow of capital into Asia’s real estate market is accelerating on longer-term investments coming of a prolonged period of steady growth, a report said Thursday. Returns in the region are forecast to remain higher than the global average for the coming year, said the report compiled by the Swiss firm KPMG, a global network of prefessional services and the Asian Public Real Estate Association.
Japan continues to be viewed as an attractive market for the lower-risk investor, the report said. China is also producing attractive returns.
The slowdown in the US and European markets is unlikely to cause an immediate negative impact on Asia this year, the report said.
“Despite the current tightening of credit by banks, the deals will continue to happen, but they may take longer” and the cost higher, said Andrew Weir, in charge of property for KPMG in China and the Asia-Pacific region.
The subprime fallout elsewhere may act as a catalyst for further development of the region as a centre for property and investment management, he said.
Total investment in the region grew by more than 27 percent in 2007 to $121 billion, the report said.
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