Tuesday, July 24, 2012

Europe's discounted properties a hit with Asian investors

More Asian investors are showing renewed interest in European properties as the financial crisis there has encouraged developers to offer discounted prices.

Analysts reckon that Asian investors are now eyeing properties that they would have avoided before while investors from the US and the UK are taking a closer look at Asian assets.

London-based Aberdeen Asset Management PLC noted that some institutional investors from Asia are showing more interest in Europe and the US, even though they used to avoid unfamiliar locations before.

It added that some of the best bargains can be found in emerging countries such as Germany, which happens to be Europe’s strongest economy.

In addition, quality property assets in prime areas that are being offered at discounted prices are expected to yield good returns in the long run, added Aberdeen.

Meanwhile, New York-based Real Capital Analytics said more investors from Hong Kong and China are entering the US property market. Compared to almost zero just 18 months ago, total transaction values now stand at US$1.5 billion (S$1.89 billion).

If the trend continues, Aberdeen feels that Asian investors could replace Europeans as the top foreign investors in US property.

View the original article here

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