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By Katie Hinderer
SINGAPORE-According to Cushman & Wakefield?
quarterly investment report on Asia Pacific, significant growth is on
the horizon
By Katie Hinderer
SINGAPORE-According to Cushman & Wakefield?
quarterly investment report on Asia Pacific, significant growth is on
the horizon. The sector of the world is already in the early to
mid-cycle of recovery; far above other international markets.
According to the International Monetary Fund
forecast, China and India are expected to grow 9% and 6.4% respectively
in 2010, in comparison to the 1.5% predicted growth of the US and the
0.3% growth foreseen for Europe.
"The divergence in fundamental lead growth in Asia
vis-?vis the rest of the world has never presented itself more strongly
than it will in 2010," the report authors state.
As factual proof of Asia Pacific? rebounding
economy, the sector saw investments in the office sector increase 48% in
Q3 to $6.3 billion when compared to Q2. Of those deals, 78% were valued
at more than $50 million. China, excluding Hong Kong, is accountable
for 50% of total asset sales in Asia Pacific.
Investors are trending toward a flight for quality;
pursuing deals that either have strong capital preservation or are
growth oriented, according to the report. Cushman & Wakefield
experts predict the total value of transactions in 2010 will exceed the
2008 numbers of $150 billion. In the first three quarters of 2009, Asia
has seen $84 billion of investments across all property types.
Cushman & Wakefield experts have seen a slight
levelling of the current bid-ask gaps, which have now reached a 12-month
low. The adjustment is further proof that alignment is around the bend
and purchasing will continue to accelerate.
The future is looking up for both buyers and
sellers. "It is evident to us that Q4 2009 and well into 2010, will
continue to present fantastic buy side opportunities. For sellers, this
is as good a time as any as macro economic fundamentals improve and
reduction in risk perception allows for more favorable debt financing
terms making structuring more efficient."
The report was put together by Priyaranjan Kumar,
regional director of the Capital Markets Group in Asia Pacific, as well
as other experts in various markets throughout the region.
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