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5 predictions for 2015 based on observations from 2014 H2


While the start of 2014 proved to be a not-so-promising year in terms of investment, volumes gained momentum in the second half, according to property development firm Knight Frank. 

The latest research titled Asia-Pacific Capital Markets suggests Australia and Japan are leading the way when it comes to international property feasibility

This may be partially because of the weakened Australian dollar and Japanese Yen as well as their appealing yield spreads.

According to the report, prime yields in these attractive markets are getting compressed, hence creating a demand in investors for secondary assets and value-added properties.

In Japan, the Tokyo the rental market is booming with premises that are rarely vacant. This presents enormous growth prospects for investors. Taiwanese are especially interested in the bustling metropolis. In the second half of the year three of the largest deals in Japan were completed in the Tokyo office market totaling US4.4 billion. 

Investors are looking towards India with bated breath anticipating a significant rise in the country's economic growth. The report shows the activity increased by more than five times in India compared to the same period in China. 

On the other hand Chinese investors are taking a different approach and trying a more opportunistic strategy by venturing into non-traditional markets overseas. 

The Knight Frank report lists a number of opportunities for sharp-eyed property developers.

  1. An economic recovery, which is on the horizon, in the US and Europe would increase the demand for leasing in commercial properties - Germany has already started attracting investor interest
  2. A rise in export demand for Asia-Pacific goods and services may increase the demand and hence the attraction of commercial spaces.
  3. Australia and Japan are looking likely to ease their monetary policies to attract investors
  4. There will be a need for prime logistics spaces with the boom in the e-commerce sector
  5. Investors and developers have solid opportunities following infrastructure developments in India and Indonesia

For sharp-eyed this could be an ideal opportunity to consider property feasibility in Asia 

Date Published: 26 May 2015
Category: General News

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