|
The stock market and housing recovery in the United States has been making headlines in recent months. However, there is one housing market that has escaped the economic uncertainty of the world largely unscathed, and has outperformed even the significant housing rally in the United States: real estate and properties in Asia. This article will outline the investment opportunities of properties in Asia and show why investing in Asian real estate is so attractive for investors. Asia Property Prices One of the biggest stories in Asia in recent years has been government measures attempting to cool housing prices, particularly in China. However, the less covered story is how housing prices have stayed high and demand has actually increased despite government policies to counteract the rising prices. This shows just how strong the demand is for Asian properties and the very substantial upside potential for these properties. China alone as one of the fastest growing middle classes in the world, with an entire class of consumers appearing overnight. Meanwhile, average income across all economic sectors in China is still increasing. What this means for investors is that real estate will remain a very viable and lucrative investment for the decades to come, as more and more middle class Chinese look to buy or rent. This is particularly important in a country like China where the biggest issue isn't economic growth, but inflation, and real estate has historically generated very high returns in such markets. This is also beneficial for investors because of the massive disparity between interest rates and returns on real estate in Asia compared to the rest of the world. Investors Have Many Options Definitely one of the biggest economic success stories in recent years has been the unbelievable rise and prosperity of China. But investors have far more options in Asia than just China. Especially in recent years, neighboring Asian countries such as the Philippines, Thailand, Hong Kong, Malaysia, Singapore and other developed or developing markets. Some of these Asian countries even have economic growth that is outpacing China. What this means for investors is that these countries will have increasing demand as their economies mature and property prices appreciate as demand increases. Furthermore, there are also many different investment options that investors can use in order to generate their returns. While residential properties have performed well historically in China and Hong Kong, the cost of office buildings and rent has remained largely stable or even growing throughout the economic certainty. What this means for investors is that beyond buying and turning residential properties for a profit, buying office space in order to generate rent can be a lucrative long-term prospect for generating a stable income. This is particularly relevant with the growing middle class in these Asian countries becoming increasingly reliant on the availability of residential and office buildings, while supply of these properties largely remain low. The Indonesia Success Story One of the major concerns in recent years has been the sustainability of real estate booms, as indicated by the 2008 mortgage crisis. This is one of the strong points of the Asian property markets due to government interaction in the market. While this is usually a negative point, it is required in these regulated markets because it prevents the formation of bubbles that can cause massive loss of investor capital. For example, the property market in Indonesia is one of healthy economic growth causing the increase in property prices as ratio of property credit to bank loans as remained below 14%. This means that households aren't leveraging too much of their income and means safer investments for investors.
Related Articles -
properties in asia, property malaysia, property investment, invest in property, asian property, asian properties, invest in asia,
|
