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Pacific Star: commercial properties to hold up in 2H

Property Report
Pacific Star: commercial properties to hold up in 2H - Pacific Star Group - commercial property - property investor

Pacific Star Group, one of Asia’s leading real estate investment houses, said Tuesday commercial properties in Asia will continue to do well in the second half of 2011. The group made the conclusion in its biannual Asia Property Outlook and Strategy report which highlights its key investment themes in regional real estate markets.

According to the group, the shine of Asian real estate environment continues, despite greater global uncertainty, as it is supported by favourable economic fundamentals and positive consumer sentiment in most markets. It noted capital values have risen on the back of solid rental growth as regional economies continue their strong expansion. It believed the economic recovery in the region is moderating to a more sustainable rate which should provide steady support for Asian real estate.

Within the commercial sector, the group’s top pick is retail real estate. The key factors supporting retail properties are tightening employment conditions, which are driving buoyant retail spending, and rising tourism inflows to Asia, which are becoming an important source of revenues for some cities. The group’s picks of the top three destinations in the region for retail property investment are Hong Kong, Singapore and Kuala Lumpur.

Hong Kong is supported by tourist spending especially from outbound Mainland Chinese visitors. Singapore likewise is enjoying a surge in visitors attracted especially to its integrated resorts. Over in Malaysia, domestic factors are at play. Strong wage growth and positive retail sentiment have boosted retail spending and real estate fundamentals in Kuala Lumpur,” explained Mr Leslie Chua, the group’s senior vice president and head of Research and Strategic Planning.


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