South Korea and China now recognised as real estate investment hotspots

Most investors expressed their plans to reallocate their investments from Japan and Australia 

The COVID-19 outbreak has prompted non-listed real estate investors to redistribute their assets from Japan and Australia to South Korea and China, reported Funds Global Asia, citing data from The Asian Association for Investors in Non-Listed Real Estate Vehicles (ANREV).

Despite the continued demand for the region, their market sentiment survey uncovered that 75 percent of senior investors have thought of changing their investment plans. Around 53.3 percent shared that they have been looking into South Korea and China.

On the other hand, only 33 percent responded that they wanted to increase their allocations in Australia and Japan, while 17 percent disclosed that they wanted to decrease their allocations in the former market and eight percent in the latter.

In comparison, none of the participants for South Korea and China markets said that they wanted to lower their allocations.

More: Commercial property investment deals in Australia tapered off amid pandemic

As for the real estate sectors, 93.8 percent revealed a growing interest to raise their allocations to the logistics and industrial sector, 56.3 percent to the residential and 25 percent to data centres.

“Despite the havoc brought by COVID-19, senior investors in Asia Pacific’s real estate market still appear to have strong appetite to increase their exposure to the region, an indication of the important role it continues to play in diversifying investment portfolios – even during difficult times,” said director of research and professional standards at ANREV Amélie Delaunay.

“It is worth bearing in mind that non-listed real estate investing is often a long-term commitment and that Asia Pacific real estate as a whole continues to rest on sound fundamentals that will continue to make it an attractive investment destination for years to come,” she added.