Retail sector will drive investment interest in Asia
Despite the global economic slowdown, Pacific Star Group has said that investments will continue in Asia. The real estate firm highlighted the retail sector specifically as an area that will maintain interest, as well as offices in Singapore and Bangkok.
Singapore based Pacific Star Group argued that the global economy was in a “state of inflection” in its Asian Property Outlook Strategy. It continued to say that the recovery for many markets depended on a 2013 and beyond macro recovery. As China has seen an economic slowdown, growth prospects in Asia have also slowed.
However there have been several positive factors for the region. There has been strong inter-regional trade, greater financing by local banks due to the retreat of European banks, wage increases have sustained consumer spending, and on top of this there has been an increased tourism level.
Pacific Star argued that despite global economic uncertainties, the healthy tourism levels and domestic conditions have secured a positive outlook for Southeast Asian retail markets of Kuala Lumpur, Singapore and Bangkok.
The report finished by highlighting potential “rich” investment opportunities. These included the fringe economies of Vietnam, Myanmar, and the Philippines, because of their large, youthful populations. They are in close proximity to India and China, and have notable levels of natural resources.