A new report reveals that Asia showed positive total returns over the last five years (with an average annual return of 6.4%). The US had negative returns (2.3% average), as did Europe (3.5%).
However, the US had a higher return than Asia in 2011, with a 14.5% average compared to Asia’s 8.4%. Europe remained below, delivering 6.6%.
Japan is a big influence in the IPD’s Asian databank, representing 50% – when disregarding the country, the five-year annual return for Asia increased to 11.3%.
Kevin Swaddle, managing director at IPD Asia, comments: “While most of Asia’s property investment markets improved a little last year, the Chinese markets soared with a return of 18.0%.
“Still, there was a wide range of returns included in the 2011 Pan Asia composite, from a high of 22.3% for Hong Kong to 3.4% for Japan. The continuing poor performance in Japanese property, the largest segment of the index, will be of little surprise to investors.
“Some markets are up on last year, and a few down. But the key finding is that the top three markets are all influenced by China: Hong Kong, the Mainland itself and Taiwan.”
