Asian Real Estate Market Monitor - September 2010

Asian Real Estate Market Monitor - September 2010

Singapore records largest investment deal since early 2008

• China saw a steady flow of small investment deals as investors continued to tread cautiously back into the market. The period saw various indications that the government intends to maintain its present strategy of cooling the property market and could potentially take further steps should existing measures fail to rein in high prices.

• Activity in Hong Kong declined as the market digested several major transactions completed in previous months. Investors found it hard to locate deals as the gradual tightening of land resources in prime commercial districts encouraged vendors to retain ownership of office and retail properties to secure stable and long-term rental income.

• Sentiment in Japan continued to improve and the period witnessed a number of significant deals. Newly merged J-REITs pruned their portfolios and sold off assets not in line with their core focus while the period also saw growing interest in nursing homes and a surge in the number of Chinese investors acquiring residential assets in Tokyo.