Tumultuous real estate conditions worldwide have not spared the Asia Pacific markets. According to the Emerging Trends in Real Estate Asia Pacific 2009 report, which is jointly produced by Pricewaterhouse Coopers and the Urban Land Institute, investors should approach new ventures with focus, caution, and a discriminating eye. They are also warned to stick with their particular area of expertise for the coming year.
However, there is still value in the Asian markets. The Emerging Trends report lists the following as the top 10 for 2009:
Despite a dwindling local economy that has been wounded by slumping export business, Tokyo is considered the number-one city for investment in the Asia Pacific region, as well as the ninth-best in terms of development prospects. Tokyo also boasts the top risk rating in the region.
Singapore’s central location makes it a gateway, spurring it to the number-two spot for investment and seventh when it comes to development. After a booming past few years, both investments and sales have begun to slow in Singapore. However, it is considered the second-best risk in the Asia Pacific, just behind Tokyo.
3. Hong Kong
Hong Kong is up from fifth place when it comes to investment and is ranked sixth in terms of development prospects. Despite its gains, though, Hong Kong continues to shoulder its share of burdens from global real estate fallout, with demand expected to cool off following a strong five years.
Bangalore is a fast mover in this year’s report, having leapt from 12th place last year to fourth this year in terms of investment. The city, which has seen an impressive amount of development over the past year, is also considered number one for development.
Shanghai has tumbled to fifth place from first place in terms of investment prospects. It is also ranked as eighth strongest in the region in terms of development. Though conditions have slowed in terms of real estate investment, both industrial and distribution demand remain robust.
Seoul ranks sixth when it comes to investment prospects and tenth in terms of development. The city is buoyed by its industrial growth, which is expected to keep real estate conditions relatively positive.
Densely populated, chaotic Mumbai has fallen to seventh place for investment and third place in terms of development prospects. The city continues to experience impressive growth, but is considered the Asia Pacific region’s third riskiest investment prospect.
Taipei’s robust office market, which boasts a drop in vacancies and an uptick in rents, has propelled the city from 16th to eighth in terms of investment. It is ranked fifth in terms of development prospects.
9. New Delhi
The Indian capital has leapt up to ninth place for investment opportunities within the Asia Pacific, and is ranked fourth in terms of development prospects. The city’s hotel sector is considered a strong area of investment.
10. Kuala Lumpur
With tourism spurring its economic engine, Kuala Lumpur has dropped to tenth place in terms of investment prospects.