01 February 2013
Property market cooling measures are here to stay according to predictions published this week by Colliers International.
In its '21 predictions for 2013' White Paper, the consultancy highlighted that government measures that have recently been introduced to cool property markets in some parts of Asia are unlikely to be removed anytime soon.
The report noted: “In anticipation of currency appreciation and sustained capital flow into Asia, most of the restrictive residential market cooling measures will remain intact throughout 2013. Governments will stabilise markets to avoid social unrest caused by soaring residential prices.
The new Chinese leadership is expected to adopt a more conservative approach to growth and economic reform. Non-residential real estate assets will be increasingly popular among a wider group of buyers including private equities, end users and real estate funds.”
The report, along with Colliers’ Global Investor Sentiment Survey, also predicted that price inflation will pressure heated Asian real estate markets, the Japanese economy will improve and China will see rising demand for logistics.
It also predicted that industrial property investments in the US are expected to be a top target for commercial property investors.
“General investor mood is one of cautious optimism around the globe,” the report noted. “Yet, there is much to be positive about in the coming year, with investors expecting steady economic improvement. We favor this sentiment and believe that while the global economy will face headwinds from recession in Europe and moderating global demand for commodities, 2013 will end with a respectable 1.5 percent to 2 percent global GDP growth rate.”
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
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