TOP 20 ASIA-PACIFIC CITIES RANKED FOR INVESTABILITY

APR has classified the cities into 3 tiers, each with a different colour code and recommendation:

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Asian Property Review evaluates top Asia-Pacific cities for their investment potential in 2016.

TIER 1

OSAKA & TOKYO

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japan1Why Invest?

In Tokyo and Osaka, the main reason for investing would be the availability of finance – major international banks are willing to loan against new/ish properties in the heart of both cities. Additionally, both cities have good speculative growth potential. In Fukuoka, while finance is not as readily available, speculative growth potential is also coupled with strong rental yield – something which is much harder to achieve in both Tokyo and Osaka.

What types of property?

As there are no limitations on property purchases by foreigners in Japan, it all depends on investment goals and criteria. Generally speaking, residential or multi-purpose condominium units are usually easier to manage remotely (less maintenance required), and provide higher, more stable rental yield. However, the larger land portion associated with houses provider higher speculative growth potential.

PROS
• Strong rental market
• Strongly pro-landlord
• Stable political system
• Low effective rental income tax
CONS
• Weak economy
• Low to moderate rental

MELBOURNE

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Although prices in Melbourne have been rising at a breakneck speed, the demand for housing in Melbourne is still going strong. This is due to a shift in population which is expected to exceed four mil in 2020 or set to double by 2051. Due to shortages of qualified workforce, Melbourne’s building industry is unable to meet this demand thus prices of housing are expected to continue rising over the next 2-3 years before stabilising. According to David Brown, Managing Director of Meridien Group, in 2015, the city experienced a 9.9% median price growth with 3.65% increase in rental yield.

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