Asia Pacific vs. Other Global Markets

The Asia Pacific region has some of the most diverse real estate markets in the world. Alongside more established markets like Australia and Japan, there are a number of more nascent markets with lower transparency, higher barriers to entry and at various stages of development.

annual total return in local currency

Source: MSCI
Source: MSCI

The Asia Pacific region has some of the most diverse real estate markets in the world. Alongside more established markets like Australia and Japan, there are a number of more nascent markets with lower transparency, higher barriers to entry and at various stages of development. MSCI tracks 11 markets in the region: Australia, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore, Taiwan and Thailand.

Thanks to the heterogeneity of the markets in the region, cross-country correlations are also not as strong as in the rest of the world. Nevertheless, in 2016 there was an emerging deceleration trend with total returns falling to 6.9 pecent from 8.5 percent in 2015. This deceleration parallels the trend seen in other parts of the world last year with returns generally moderating.