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SG China tops Asia Pacific stock rankings

Property Here - Thursday, May 02, 2013

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By Nikki De Guzman:

The Asia Pacific region reported an eight percent growth in invested stock last year, outperforming both North America and Europe, according to a DTZ report.

Emerging markets fuelled the region’s robust performance, with China surpassing Japan as the region's biggest market, expanding by 15 percent. 

“Asia Pacific continued to drive growth in global invested stock in 2012, with China now the largest regional market on the back of strong economic fundamentals,” said Kate Barrow, Head of Asia Pacific Forecasting at DTZ. She added that the region’s emerging markets performed well in 2012, with Hong Kong, Taiwan and India experiencing healthy growth rates.

The report also highlighted ongoing deleveraging across the region as private equity surpassed private debt as the largest source of growth in invested stock.  

Meanwhile, commercial investment volumes remained buoyant, as the proportion of inter-regional investment activity doubled and transaction volumes (excluding land sales) jumped 21 percent. Investment volumes increased significantly in Japan and Hong Kong at 17 percent and 40 percent respectively.

“Globally, liquidity has returned to its long run 10-year average, while legacy debt issues continue to subdue investment activity in Europe. In Asia Pacific, the average liquidity ratio fell to three percent in 2012 on the back of increasing stock and declining volumes in many markets,” DTZ said.

At the same time, Singapore is the world’s most liquid market with a liquidity ratio of nine percent, while Japan and Australia saw below average levels of liquidity.

“Given the current state of global investment markets, property is emerging as a particularly attractive asset class. For both new and returning investors in the markets, we think that apart from the currently abundant relative value, market size and liquidity are essential. You must be able to buy into and then later sell out of a market,” said Hans Vrensen, Global Research Head at DTZ.


Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email