Foreign Property News | Posted by Si Thu Aung
Used to playing "second fiddle to Sydney", Melbourne overtook its rival this year as the number one city in Asia Pacific for both investment and development prospects, according to the Emerging Trends in Real Estate Asia Pacific 2019.
The annual real estate forecast jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers praised the Victorian capital's constrained office supply pipeline; good yield spread over the cost of debt and sovereign bonds; deep, liquid, core market; and fair prospects for rental growth.
Sydney, the previous report’s chart-topper, placed third in both investment and development rankings. The city is a favorite of global investors due to relatively high returns and as a safe-haven play.
Competition for assets has helped sustain pricing, while low vacancies and growing demand for space suggest that rents will continue to rise.
While ranking eighth in development, Singapore has seen its office market rebounding from cyclical lows, enabling the city-state to take the second spot in investment rankings.
"Singapore's appearance in the number-two position is more an indication of its status" researchers wrote in the report.
ULI and PwC made the rankings based on over 350 survey responses received from real estate professionals, including investors, developers, property company representatives, brokers, and consultants.
Tokyo and Osaka also showed strong prospects for 2019. The former ranked fourth in investment and fourth in development, reflecting what has always made it a favorite among institutional buyers: cheap finance, attractive leverage, a good spread over interest rates, and a large stock of investment-grade assets. Osaka ranked fifth in investment, but sixth in development.
Ref: Propertyreport
