An increasing number of property investors are looking to Asia for favourable returns on real estate. Indeed, recent Global Property Guide data suggests that the region has been one of the best performing over the course of the year.
Asia’s strong economic growth, low interest rates and increases in foreign demand have led to house prices in many countries climbing steeply, with many raising fears that a property bubble could be forming.
To this end, the news provider cited a warning from the International Monetary Fund that “the booming Asian real estate markets may pose risks to financial stability”.
Topping the list of Asia’s hottest markets is Singapore. Residential housing prices in the country climbed by 38.1 per cent in the last year, the news provider claimed. One reason for the rise in demand is a rapid growth in the number of Chinese buyers looking to take advantage of low interest rates in the destination.
Hong Kong is next on the list. Few restrictions are placed on foreign buyers, so the market tends to attract a healthy supply of international investors. The annual growth in the country is 24.5 per cent.