Asian property investors are feeling extremely optimistic, according to the recently released Colliers International Global Investment Sentiment Survey for Q3 2010.
91 per cent of Asian respondents to the survey said they wanted to buy property in their domestic region and 73 per cent of Asian respondents expect to expand their property portfolio over the next year. Shanghai followed by Hong Kong and Singapore were the most desired locations for commercial property investments over the next 12 months, while many respondents showed interest in second-tier Chinese cities like Hangzhou and Nanjing for residential investments.
“Amid the prevailing negative interest rate environment and the sustained rental growth, investors remain keen on real estate assets in Hong Kong. They include private investors, real estate funds, developers and a number of cash-rich corporates.” said Richard Kirke, managing director of Colliers International Hong Kong.
“The survey shows that Asian investors are confident on the macro-fundamentals in the region,” said Piers Brunner, CEO of Colliers Asia. “Personal and corporate debt levels are low. Interest rates are low and liquidity is high. Optimism in the market is reinforced by 75% of respondents in Asia saying a double-dip recession is unlikely.”
Asian investors do have some concerns though, the survey showed, mainly overheated markets, change in market liquidity, and interest rate increases.
The survey showed a strong desire in Asian respondents to invest outside of their home countries, with 59 per cent saying they wanted to buy property overseas as opposed to just 30 per cent of all respondents. Desired hotspots for Asian investors included would Sydney office and Brisbane retail assets in Australia and office properties in New York and Chicago.
Around the globe the survey showed generally greater optimism, which Colliers said indicated that markets are on the upswing and are characterized by rising demand, falling availability and vacancy and rising headline rents.
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