Ownership of more than one property used to be the privilege of a select few. But with a buoyant economy and the well-heeled in ever-growing numbers, property investment has driven savvy investors to take more risks by venturing into relatively untested markets to maximise returns.
'With people becoming wealthier and savvier, investors are looking beyond the traditional markets of Britain and Australia. We have seen a lot of interest for countries like Spain, Portugal, Germany and Cyprus,' says a Hong Kong-based property expert.
Figures released by Jones Lang LaSalle in July showed direct real estate investment in the first half of this year in Asia-Pacific was up 12 per cent to US$55billion, with a significant proportion of the increase representing additional cross-border investment. The mainland and Singapore are among the region's strongest real estate markets.
Jones Lang LaSalle's regional director, Anne-Marie Sage, says the ideal opportunities are in countries where the property market has moved but is yet to peak. 'The best is to invest in markets that have taken off, but where prices are still moving and there is more potential for growth,' she says. 'For example, Dubai is booming and still strong as well as India, China and parts of the US like Las Vegas and San Francisco.'
In assessing an opportunity, investors need to take an all-round view and look at every part of the investment model, including examining title rights, ensuring flexible and creative financing, a strong rental market, sustaining mid- to long-term growth and having an exit strategy.
Darien Bradshaw, regional director for international properties at Colliers International, advises investors to 'look for strong secondary markets like Hong Kong and Singapore where there will be demand even in a down market'.
