Demand for real estate in Asia is expected to pick up next year as investors sink more capital into the region, according to a report by Colliers International.
Institutional investors who are under-invested in Asia will seek to "rebalance their allocations" - a move set to bring in a "much more significant" volume of inbound capital, the report said.
"It is likely that some Asian governments will relax their property cooling measures, particularly given the softening of residential prices and slowing economic growth," said Mr Terence Tang, Colliers' managing director of capital markets and investment services in Asia.
"We are already witnessing some longer-term investors... now actively seeking realistically priced deals to take advantage of the slow market, in view of the potentially lower exit risk."
The Colliers' International 2015 Property Outlook report also noted that vendors are becoming more realistic in asking prices.
This should stimulate an increase in transactions, while Chinese investors are likely to continue their buying spree both within Asia and outside the region.
Closer to home, the office market in Singapore will continue to attract investors next year, and "an under-supply of new office space will support healthy occupancy rates, as well as rising rents and prices", said Colliers.
"Investors will be keeping an eye out for good-value opportunities, especially in the luxury segment," said Mr Tang, pointing to the lull in the residential property sector.
"The slowdown in the market has encouraged sellers to reduce their asking prices, which may generate more momentum in the year ahead, compared to what has certainly been a lacklustre 2014."
He added that capital-market activities will increase, led by more international investors, particularly private-equity groups from North Asia and European pension funds.
But Colliers said that it "does not expect rates to rise either soon or fast".
"As a result, the overall environment for borrowing for real-estate purchases remains near a record-low, giving continued impetus to capital markets around Asia."
This article was first published on December 16, 2014.
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