PwC: Australia tops real estate investment

By Rob Starr, Content Manager, Big4.com

Australia has dominated investment flows in Asian real estate despite Sydney and Melbourne both slipping in the top 10 Asia Pacific real estate investment prospects for 2013, according to PwC and the Urban Land Institute.

Sydney slipped to fourth spot from third while Melbourne went from 7^th position to 10^th. It is the fourth consecutive year both cities have been included in the top 10 investments chosen from a basket of 22 destinations.

For the Asia Pacific as a whole, steady economic growth, rising incomes, and stable or increasing property values are contributing to an overall sense of optimism. However, this is tempered by growing concerns among investors that prime assets in key real estate markets are becoming overpriced. For instance, capitalisation rates across Asia remain more compressed than in many western markets, and yields for core office stock in cities such as Beijing, Hong Kong and Singapore are returning as little as two percent.

The Emerging Trends report provides a 12 month outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. Covering 22 markets in the Asia Pacific, it is based on the opinions of more than 400 internationally renowned real estate professionals, including investors, developers, property companies, lenders, brokers and consultants.