Business | Property
Tokyo overtakes Shanghai as Asian hot spot for real estate
Tokyo overtook Shanghai as the best Asian city to buy real estate as investors seek less risky investment for 2009, a survey by the Urban Land Institute and PricewaterhouseCoopers LLP show-ed.
- Bloomberg
- Published: 23:35 December 4, 2008
Tokyo: Tokyo overtook Shanghai as the best Asian city to buy real estate as investors seek less risky investment for 2009, a survey by the Urban Land Institute and PricewaterhouseCoopers LLP show-ed.
The Japanese capital has the best prospects and lowest risk among the 20 locations covered by the Emerging Trends survey. Singapore is in second place and Hong Kong is third, according to the ULI, a Washington-based research firm, and PricewaterhouseCoopers, a New York-based accounting firm.
Property values are tumbling in New York, London and Tokyo after the global credit crisis roiled lending and sidelined buyers. In Asia, markets with the strongest economies and highest levels of liquidity will be most attractive as investors show a flight to quality, according to Stephen Blank, a principal researcher at the ULI.
"Tokyo is a weaker market than last year, but clearly stronger than other global financial centres," according to executives interviewed by the ULI.
Shanghai fell to fifth in the survey because its risk rating was ranked 11th, the report showed. The survey was based on interviews with executives at 60 property developers and investment companies. "Financing will be the single biggest issue facing the industry in 2009." Blank said.
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