is it the time to invest in Asia-Pacific real estate?

The global real estate capital market grew last year to hit US$12 trillion, but the subprime crisis has thrown a spanner in the works.
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Investors are finding it tough, with liquidity drying up, yields compressing, and valuations in the US and UK dipping. 7 E5 h4 |" U5 p
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However, some analysts said that opportunities remain and may even grow, as markets approach fair value. They noted that demographics in emerging Asia also support long-term investment horizons. 6 `1 [4 d' e% w. G8 q

$ y* j( h$ v- L  ?7 yProperty prices around the world have suffered as investors attempt to ride out the current uncertainty in the market by holding back funds.
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Ong Choon Fah, executive director and head, SEA Consulting and Research, DTZ, said: "Because there is so much uncertainty around the markets - financial markets, capital markets, equity markets - people don't really know what to think, and when one is confused, people don't want to make major decisions." . d) z! Y) o! w( U/ Q( T0 {
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Property watchers said that yields and prices are expected to correct further on the downside in the year ahead - with some sectors hit more than others.
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David Green-Morgan, Asia-Pacific research director, DTZ, said: "Potentially, industrial and retail sectors may correct more than the commercial office sectors, which tends to be more resilient... the downside tends to be less in those areas."
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DTZ said that the one bright spot in the real estate market lies in Asia-Pacific, where economies have held up comparably well so far. ! h+ O' t1 f( u& i
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Mr Green-Morgan said: "At the moment, it is holding up quite well and that is due to the fact that there is a much bigger domestic market in Asia-Pacific than in previous slowdowns, and also because there is much more wealth in Asia-Pacific, than historically." ! P9 l3 ]. G4 s' |

* ?; Q. e, w% n3 W6 C+ lDTZ said this has kept overall property prices reasonably firm as prospects for capital growth dry up. , a! y4 B5 q  X6 \+ K: A
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The focus is now on occupier fundamentals. And for this, DTZ's top picks currently include resorts in Thailand's leisure sector, and its serviced residences.
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" [( m+ D  A3 K$ TIt also likes emerging markets such as Vietnam - where demographics are a key factor.
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Ms Ong said: "Although Vietnam has its own set of problems, if you look beyond the immediate future, it has a huge population... it has one of the longest coastlines in Asia. So again there are opportunities there."
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, B$ u) Q- \: K, R- j4 A  KDTZ said that another area of interest is Indonesia, where residential prices have come off highs, coupled with a growth in infrastructure projects. - CNA/ms