Excess liquidity has had the most influence on the Asian real estate market with local sovereign and institutional funds lapping up assets regionally and globally, a real estate forecast by PwC and the Urban Land Institute has found.
According to the survey - Emerging Trends in Real Estate Asia Pacific 2018 - there has been an emergence of interest in new markets and asset classes such as data centres, affordable housing projects, build-to-rent, co-working facilities, and student and senior housing.
The $45.2 billion capital outflow from Asian markets into global property assets nearly doubled from a year ago, noted KK So, Asia Pacific real estate tax leader at PwC.
In the high-net-worth space, the survey found increased activity from family funds.
‘They are going into niche asset classes. You’re seeing a lot [of family funds] going into hospitality,’ Colin Galloway, the principal author, said at a media briefing in Singapore.
‘Boutique hotels in Thailand, Australia and as far as the Maldives. They tend to try not to compete with bigger private equity funds.’
While Ho Chi Minh, Auckland and Tokyo were the top three investment destinations in the hotel sector, Seoul, Beijing and China’s second-tier cities were the least popular.