[photopress:housig.jpg,full,alignright]The credit ratings agency Standard and Poor is of the opinion that urbanisation along with the emergence of Real Estate Investment Trusts (REITS) will drive Asia’s long-term property market.
In its 2006 Asia property review, Standard and Poor said, ‘Growth in urbanisation will be one of the defining characteristics of the property sector in Asia over the long term. Migration to the traditional urban areas and newly established regional economic centers will lead to a significant expansion of the urban population and create very strong demand for housing.’ Another key long-term driver of real estate in the region, according to S & P, is the development of the REIT market. A REIT is typically an equity-oriented, tax-efficient investment vehicle that allows smaller investors to pool funds for indirect participation in real estate ownership or financing.
The report said, ‘Asia is home to half the world’s population, but real estate per capita is among the lowest globally. Demand for office space is strong in almost all the main commercial centres throughout Asia. Vacancy rates are trending down and rents are increasing.’
Source: Property Report.