International Property Investment News

Boost for Asian property market

The popularity of Asia as an investment destination will continue to increase, according to new research.

A study from Fidelity International found that foreign investors injected some £47.75 billion into Asian property in 2006, reports Easier.com.

Cross-border investment grew by 50 per cent, with the increasing urbanisation and industrialisation of countries such as Thailand and Malaysia leading to growing commercial investment and stimulating growth in the housing market.

Polly Kwan, of Fidelity Asian Property Fund, commented on the research at a recent London conference:

"The Asia Pacific property market is extremely diverse. Local markets remain distinct and there is a low correlation between the countries."

Ms Kwan added: "The region benefits from having both mature and emerging property markets and there are a number of factors in play which should support growth for some time to come."

The sustained economic growth of China and India is triggering improved economic conditions across Asia and, in turn, attracting increased foreign interest.

Talking to CityWire, Simon Tyrell of New Star International Property Fund, explained the improving fortunes of the Asian property market:

"Strong fundamentals are underpinning Asian economic growth – make into small dash populations are increasing, gross domestic product per capita is rising and markets are benefiting from maturity and more transparency.

"Financial services and support sectors have expanded particularly quickly as increasingly transparent tax systems and the removal of cross border restrictions to investment and banking attracts foreign investors.

He continued: "While growth has been strong in many Asian countries and sectors, the region has not over-heated."