Why Are Investors Investing in the Asia Pacific Region?

By: Levi Santiago

The properties available in the Asia Pacific region have been sought after by more and more investors given the region’s potential for creating a good portfolio and the advantages of the investments. This blog will discuss why the Asia Pacific region’s markets, with properties like a condo for sale Philippines, have been gaining more attention from investors.

What is the Asia Pacific Region?

The Asia Pacific Region typically comprises the western Pacific Ocean region of the globe, which is made up of many countries located in East and South Asia, Oceania (countries like the Northern Mariana Islands), and Southeast Asia (countries like Lao People’s Democratic Republic and the Philippines). Also known as the APAC, the Asia Pacific region is a vast region of seas, land, and people, to the extent that there are cases wherein referring to the APAC depends on the context of the discussion.

The wider Asia Pacific region

For example, the Asia Pacific Economic Cooperation involves countries in the North and South Americas, like Peru, Canada, Mexico, the United States, and the like. On the other hand, the Indo-Pacific region is made up of a wider area of the APAC, including countries like Myanmar, India, Mongolia, Afghanistan, Russia, and the like.

The term Asia Pacific region was coined for the purposes of business and politics, particularly commercial and financial matters. The reason for this is because of how varied the countries are in the region, and this plays into the rapid economic growth observed in countries within the Asia Pacific region. For example, a condo for sale Philippines has its own surrounding community, amenities, and location, which can increase the property’s value.

Why is the Asia Pacific Region valued?

The value of the Asia Pacific region is rooted in how the APAC is a melting pot of different nations that each possess varied geographical qualities, climates, and distribution of populations. Each nation in the Asia Pacific region has its own history, politics, regional economy, developing countries, local governments, languages, cultures, and traditions on which people interact to live in the world. It is the complexity of the Asia Pacific region that serves as its strength in the global economy, and it is what has made it stand out in the eyes of investors on the international stage.

Investors are interested in maximizing the Asia Pacific region

As the modern global economy in recent years continues to progress through rising economies and recessions, more and more attention from international organizations and investors is being redirected towards the talent and workforce produced by the Asia Pacific region. The top organizations worldwide source human capital from the APAC through their own thorough systems of screening that assess different drivers in order for a workforce with good potential to be able to boost success for businesses.

In addition, more than 50% of the global workforce comprises workers from the Asia Pacific region, which is why more and more investors and organizations are looking to maximize the opportunities in APAC. This may be related to why a condo for sale Philippines can be a good investment given how many workers use condos as a place to live in.

Factors Contributing to the Asia Pacific Region’s International Value

APAC’s value to international organizations and the global economy can be analyzed using five key factors outlined by the 2023 Colliers Global Investor Outlook report on the Asia Pacific region’s impact on global real estate. It is explained that the real estate markets worldwide can be susceptible to volatility that can negatively impact investors and organizations globally.

Hence, it is ideal for investors to consider trends related to the Asia Pacific region with the right strategies, along with having adequate amounts of private capital. Unexpected circumstances in the market can happen, therefore maximizing the opportunities in the Asia Pacific region is vital.

Better stability is guaranteed for investments

Experienced investors are aware that properties and assets that comply with Environment, Social, and Governance criteria and procedures are able to become premier investments. Therefore, investors are eyeing properties that are able to maintain a level of efficiency when it comes to operational costs and energy usage.

In navigating the real estate markets to create a good portfolio, APAC is using sustainability as a driver for growth and improvement. Through properties that maintain a sufficient level of sustainability, organizations are able to garner success with reputational and regulatory matters, along with ensuring well-balanced operational costs in investments. There are many condo for sale Philippines that are worth considering for this matter.

Diversity in the region fosters dynamic growth

Because of the diversity present in the markets of APAC, the expectations for regional growth in APAC are stable and strong. For this reason, the APAC is anticipated to show better performance compared to the markets of other global regions such as the Americas and Europe, Middle East, and Africa (EMEA) regions, which have been observed to have higher risks of a recession.

If organizations are able to implement strategies that attract workers from the APAC, they will be able to positively take advantage of the monetary policies and development pace in the APAC. Through this, the stabilization of debt markets can make APAC a “haven for property investments.”

Industrial & Logistics and Office sectors bring a positive impact

In the APAC, it is observed that the sectors of Office Industrial & Logistics are prime choices when it comes to investments in the real estate market, showing a trend of improvement that has been continuously rising. Properties that are able to guarantee better government approvals and adequate energy supply in the APAC are the ones that are particularly in demand.

The Office and Industrial & Logistics real estate in APAC is expected to exceed the performance of markets observed prior to the pandemic. Moreover, the available real estate properties in the APAC would make for quality portfolios and investments that more and more investors worldwide are looking to capitalize on.

Exposure to the APAC’s advantages despite volatility

The real estate market is not without its volatility, which can bring challenges to investors that may lead to fallouts and loss of profits, whether it’s from economic recessions, inflation rates, and others. When it comes to the stability of policy and likelihood of growth in markets, the APAC is observed to have better exposure to positive impacts from challenges compared to the western region of the world.

Hence, North American and European funds are trying to gain exposure from markets located in the APAC in order to gain big amounts of capital to maximize the APAC’s rental growth and lessened issues with tenant solvency. Properties in the APAC such as a condo for sale Philippines have good potential for a good return on investment.

Read more: How Can a Foreigner Buy a Property in the Philippines?

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