According to Schroders Global Investor Study, Asian investors tend to invest more, rather than spending or saving their incomes compared to their Europeans and American counterparts. Their study showed 32% of investors in Asia prioritised investing compared to 20% of Europeans and 19% of Americans.

Percent of investors vs savers in Asian countries :

• China and Taiwan: 45% invest, 11% save
• Indonesia: 21% invest, 12% save
• Japan: 38% invest, 17% save
• Hong Kong: 39% invest, 17% save
• Singapore: 30% invest, 16% save
• Thailand: 24% invest, 23% save

In South Korea, however, only 12% choose to invest compared to the higher 19% who prefer to save.

Indonesian stocks popular with domestic investors

Meanwhile, investors have shown a renewed interest in Indonesian stocks, with levels not far from all-time record highs. But foreign investors have sold more Indonesian stocks than they have bought this year, with the net sell reaching IDR 26.61 trillion (approx. USD $2 billion). This is mostly due to global factors, such as monetary tightening in the USA and geopolitical issues. Foreigners are starting to become re-interested in emerging (equity) markets. But domestic investors continue to show confidence in Indonesian stocks, making them currently rather expensive.

Property transactions boosted in Asia Pacific

With property prices soaring in larger centres, global commercial real estate investors are looking to secondary cities for investment. “The share of transaction volumes happening in the larger cities has been diminishing around the world for the last year or two, “ said David Green-Mason, managing director, Asia Pacific for Real Capital Analytics, a global leader in the analysis of real estate transactions.

“We are now seeing more transactions in secondary cities. It is a very consistent theme, even though we are seeing regional differences. Investors are looking for higher-yielding opportunities in smaller cities around the world.

“The pricing in major cities is seen to have reached unsustainable levels.”

“Asia-Pacific and Europe continue to have quite a positive momentum in terms of investment volumes but this hasn’t always been the way,” said Green-Mason, who is responsible for markets from India to New Zealand, looking at both micro and macro trends for Real Capital.

“A couple of years ago, Asia was really lagging the world in transaction activity. However, very large deals in Hong Kong, Singapore and a huge number of transactions in Australia has really boosted the activity in Asia Pacific in the past year.”

Wealthy domestic investors have been putting a lot of capital into the Hong Kong market, while huge amounts of money are flowing out of Hong Kong into European property investments.

“Asians have overtaken North Americans as the biggest movers of capital in the world,” said Green-Mason, particularly with Singapore, Hong Kong and other Asian investors.

Singapore’s property market is surging

After four years in the doldrums, Singapore is again Southeast Asia’s hottest real estate market with sales volumes rising 50% to US$5.8. Predictions show increased demand expected in 2018 with its government stimulus measures absorbing surplus offices and housing, making it the second most-affordable Asian residential market behind Tokyo, according to the PwC survey. Tokyo and Hong Kong share similar conditions which are leading to investors look to emerging markets like Vietnam, the Philippines, Indonesia and India.

“Singapore has been the only market in Asia in which government efforts to contain price rises have actually been successful,” the report notes. “Notably, the main difference between Singapore and elsewhere in Asia is the government’s tight control over the land sales process …”

Yokohama’s sales volumes surged by 566% in the first six months, while cash is reportedly pouring into Bangalore, Nanjing, Fukuoka and Wuhan.

Vietnam has regulatory difficulties but is showing steady long-term economic growth and a swelling consumer base. Its commercial hub, Ho Chi Minh City, is ranked third for its investment prospects within Asia in 2018 and first for development opportunities.

Analysts say there are still openings for premium projects in Indonesia, despite the saturated office and housing markets.

Sources: Singapore Business Review, Indonesia-Investments, Real Estate News Exchange, Asia Times

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