HONG KONG, CHINA -- (Marketwired) -- Asia's consistent economic growth should lead to sustained demand for institutional-grade assets in the region in 2015, according to Colliers International's 2015 Property Outlook, across the full spectrum of asset classes. But given the compressed yields and lack of available stock, capital is also likely to continue to head out of the region in search of opportunity.
"It is likely that some Asian governments will relax their property cooling measures, particularly given the softening of residential prices and slowing economic growth," Terence Tang, Managing Director of Capital Markets, Asia from Colliers International, said. "We are already witnessing some longer term investors who are now actively seeking for realistically priced deals to take advantage of the slow market, in view of the potentially lower exit risk."
"The type of investor looking for international deals is also increasingly varied, with new players entering the market," Lina Wong, Managing Director with Colliers Shanghai, said. "We predict that over the next few years, investors will expand their reach into a broader range of asset types, as well as increasing the size of deals."
"The Hong Kong market will remain active in 2015, with buyers competing for value-added properties," Antonio Wu, Deputy Managing Director of Colliers Hong Kong, said. "Chinese investors are now the biggest group of foreign buyers for property around the globe, and their offshore buying spree is likely to intensify."
The Singapore office market will continue to attract investors in 2015, Colliers predicts.
Investors "will be keeping an eye out for good-value opportunities, especially in the luxury segment," Tang said. The slowdown in the market has encouraged sellers to reduce their asking prices, which may generate more momentum in the year ahead compared to what has certainly been a lacklustre 2014.
The likelihood of an interest-rate hike in 2015 will give some investors pause for thought. But Colliers does not foresee rates rising either soon or fast.
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