2016 - Year of Uncertainty
Source: World Property Journal - Global accountancy network BDO predict 2016 will be a year of uncertainty for the Asian Real Estate market, with U.S. interest rates and China's economic slowdown rocking the positive foundations laid in 2015.Solly Benaim, BDO's Global Head of Real Estate tells World Property Journal: 2016 will be a year of uncertainty for the Asian Real Estate market, with US interest rates and China's economic slowdown rocking the positive foundations laid in 2015. But some doors to opportunity will remain open, especially when it comes to non-traditional assets. Local knowledge and detailed understanding of the sector in each market will be key to unlocking growth in 2016. The increase of interest rates by the Federal Reserve is top of the watch list - but the strengthening of the dollar is not necessarily a bad thing for the real estate sector. Capital is invested where it goes further, so when US rates were at zero, investors looked further afield to ensure they got more for their money. India saw major investment from the west, as have Asian hub cities such as Manila and Bangkok. Though it will have a negative effect on local currencies, the US investment dollar will now go further in emerging markets, bringing some fluidity to the market and leading to an upturn in the second half of 2016 - with Malaysia and Singapore set to reap the benefits. Those willing to ride out lower yields initially can look forward to capital gains on savvy investments towards the back end of 2016.
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