Asia’s residential markets under perform

Asia’s residential property markets have performed poorly, a report from the Global Property Guide reveals.

Matthew Montagu-Pollock, publisher of the Global Property Guide, says: “There have been few less profitable investments than Asian residential property over the past decade.

“And if the present construction boom continues across Asia, the next decade isn’t going to be much fun for property investors either.”

Although rental yields are quite high in Indonesia, Thailand and the Philippines, and Asian countries benefit from strong economies, their real estate markets’ rise has been limited because of government mistakes.

Prince Cruz, chief economist for the Global Property Guide, says: “Asian real estate markets would have been stronger had it not been for government mistakes.

“If it is not a coup, a protest rally or runaway inflation, then it is government meddling in the housing markets that has killed performance”.

Cruz’s study points to the housing markets of Singapore, Hong Kong and South Korea as victims of government subsidies and intervention, while the housing markets of the Philippines, Indonesia and Thailand have suffered from political instability.