Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Asia has the most dynamic real estate markets in the world. Underlying macroeconomic factors contribute to the growth of the sector. Asian economies account for nearly two-thirds of the world’s GDP growth, and many countries are growing faster than the United States and Europe.
This makes Asia’s real estate a key diversifier for investors mostly invested in Europe and the United States, opines global investment firm specialist in alternative assets, KKR.
“Without exposure to Asian real estate, we think investors are missing access to a dynamic, fast-growing region with some of the busiest and most interesting real estate markets in the world,” said John Pattar, Head of Real Estate Asia at KKR.
As the asset manager explained in a recent insight, the region is diversified from within. “Markets in Australia, Japan, South Korea, and China differ significantly from one another. Looking at interest rates, a key variable for real estate, as an example, Australia and South Korea continue on their path of heightened policy rates. Conversely, China reverted its interest rate hike cycle back in July and Japan remains a global outlier among developed countries with slow rate increases,” Pattar said.
KKR’s recent analysis underscores the sector’s resilience and long-term appeal. According to Pattar, several trends are driving the positive outlook. “For example, trade among Asian countries is beginning to account for a higher percentage of the region’s total trade volumes, which translates into different needs for logistics and industrial properties,” Pattar said. “E-commerce is rising in key markets such as Australia and Japan, creating a need for more new logistics facilities,” he added.
The company highlights specific opportunities, such as limited-service hotels and upscale hotels in Japan or multifamily residential housing in South Korea and China.
