Real estate: A lifeboat for choppy markets
Asian investors still love property, despite the tight spreads.
|Enough spread? Lease risk in selected Asian office markets|
|City||Stabilized yield||Debt||Spread (bp)|
|Source: Jones Lang LaSalle/LaSalle Investment Management|
Like many asset classes, Asia’s property markets have enjoyed strong growth over the past few years, compressing yields and spreads over cost of funds (see table). Yet there is little sign that the region’s real estate markets are preparing to pause for breath as demand from investors continues.
"We remain very positive about the prospects for the region," says David Edwards, regional director at LaSalle Investment Management in Hong Kong. "Economic growth is very strong, companies are growing rapidly and sentiment is very strong."
A member of the Jones Lang LaSalle group, LaSalle Investment Management (LaSalle) is a global real estate investor with more than $40 billion of assets under management.