Real-Estate market in Asia to Grow

The flow of capital into the AsiaPacific’s real-estate market from outside the region is accelerating, a report has
said.
This is the result of the credit crisis in the United States and Europe, the report by KPMG, FTSE Group and Asian
Public Real Estate Association (Aprea) said.
The acceleration is coming off the back of prolonged, steady growth, which has been powered by a combination
of opportunistic and increasingly longer- term investments, it said.
“With the credit crisis in the US and Europe, investors are ... looking to Asia for growth,” FTSE quantitative
research head (Asia-Pacific) Jamie Perrett said.
While returns on real-estate investments are expected to decline in most countries, returns in the Asia-Pacific are
expected to remain higher than the global average of slightly more than 5 per cent for the coming year, it said.
Market sentiment in Asia has been hit by the credit crunch but the regional outlook should remain positive, Aprea
chief executive Peter Mitchell said.
“ The sub-prime fallout elsewhere may well act as a catalyst for the inevitable further development of the
Asia-Pacific as a centre of and investment management,” he said.
Real-estate funds will remain the main source of capital for investments in Asia this year.