DTZ lowers forecast for property investment in Asia-Pac

DTZ has downgraded this year’s property investment forecast in the Asia Pacific region from S$158 billion to S$135 billion.

“The downward revision comes as a result of policy initiatives in China to cool the property market, the earthquake and tsunami in Japan, and fears of a global economic slowdown, which is leading to reduced investment flows,” said DTZ in a report.

However, the real estate investment firm expects a minor recovery in volumes in 2012 to S$142 billion. The firm also noted that the region provides a vast array of attractive investment opportunities.

Its Asia Pacific fair value index, which provides insights into the relative attractiveness or current pricing in commercial property markets, climbed 70 points in the second quarter of this year from 65 points in the first quarter. This pushed the global score from 50 points in the first quarter to 55 points in the second quarter.

Tony McGough, Global Head of Forecasting and Strategy Research at DTZ said, “With a fair value index score significantly higher than the global rating, Asia-Pacific continues to compare favourably with other global regions.”

“Investors are set to benefit from stronger rental growth in the region, associated with a more positive economic backdrop than in the United States or Europe.”

The firm said that the main economies of the region, which includes Australia, China, India and Japan, are expected to cool down this year, due in part to the financial disarray in Europe and the US.

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