Emerging Trends in Real Estate® Asia Pacific 2016

Emerging Trends in Real Estate® Asia Pacific 2016, jointly published by the Urban Land Institute (ULI) and PwC, gives an outlook on Asia Pacific real estate investment and development trends, real estate finance and capital markets, and trends by property sector and metropolitan area. It is based on the opinions of 343 internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.

Overall findings from the report include the following:

• Weaker land sales in the first half of the year was attributed mainly to slower sales in China.
  
• Yields are now also pushing record heights in most markets, but buying momentum seems unlikely to slow in 2016.
  
• With yields in Asia now at levels often deemed uncompetitive compared with deals on offer in the United States and Europe, some investors continue to move up the risk curve, investing in asset classes and geographies that provide better returns.
  
• Although yields may have further to run in markets such as Australia and Japan, many investors now see rental growth (rather than cap-rate compression) as a source of future profits.
  
• Opportunistic returns are tough to find in the current environment, but plenty of funds operate—apparently profitably—in the space.
  
• Emerging markets such as the Philippines, Vietnam, and Indonesia have enduring appeal given the higher yields and growth they offer.
  
• There is plenty of risk out there.