While the success of Asia Pacific governments in containing the spread of COVID-19 has helped limit its impact on local real estate markets, concerns are growing that a correction may be in the cards next year, according to the 2021 Emerging Trends in Real Estate® Asia Pacific report. The 15th edition of the regional real estate forecast report is jointly published ULI and PwC.
The report names three markets where stress seems likely to surface. Firstly China, where a liquidity squeeze is creating bank financing challenges for smaller developers. Secondly India, where the implosion of local nonbank finance companies has created opportunities for foreign private-equity funds. And lastly Australia, where the economic impact has been most acute and greater market transparency is likely to open up more buying prospects.
Singapore, Tokyo, and Sydney continue to rank as the top three markets for investment and development prospects in the region. These markets are each promising a sense of safe harbor in an increasingly hostile global environment, both in terms geopolitical and economical risks. Seoul rose steeply in this year’s investment prospects rankings as South Korea enjoys the benefit of a deep domestic economy that allows assets to be brought or built with a view to serving domestic demand rather than outwardly facing geopolitical risk. Ho Chi Minh City once again is seen as the sole emerging-market city with the best prospects for growth, boosted by its successful containment