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Global investors keen on Asia real estate, survey finds

real estate
By Hui Ching-hoo   
January 14, 2021

Global institutional investors are keen to invest in Asia Pacific real estate over the next two years to capitalise on the region’s strong market fundamentals, according to findings of a survey by Asian and European property investment groups.

Some 22% of the 99 survey respondents plan to raise investments in Asia Pacific property over the next two years, the Asian Association for Investors in Non-listed Real Estate Vehicles (ANREV) says in a statement on January 13.

That’s higher than the 16% who plan to raise investments in the US, and 13% in Europe.

The coronavirus pandemic “has not knocked the underlying fundamentals underpinning the growth of Asia Pacific’s real estate, nor the important diversification role the region plays in portfolios”, according to Amélie Delaunay, ANREV’s director of research and professional standards.

“In spite of the widespread disruption and change brought about by Covid-19, the pandemic has not made any real dent in institutional investors’ appetite for real estate investment in Asia Pacific and investors still have large amounts of real estate capital to deploy to the region,” she says in the statement.

Their top investment destinations in Asia Pacific are Sydney and Melbourne in Australia, Tokyo in Japan, and tier-one cities in China.

The survey was conducted in late 2020 by ANREV, the European Association for Investors in Non-listed Real Estate Vehicles, and the Pension Real Estate Association.

The respondents are global asset owners and fund managers, including 19 based in Asia Pacific. More than three-quarters have no plans to rebalance their portfolios over the next two years.