Asian realty gained from subprime crisis: JLL

CHENNAI: The sub-prime crisis that rocked the economy across the US and to an extent the Europe earlier this year, seems to have had a positive impact on Asia. A few countries in Asia are attracting the monies, which otherwise would have been meant for American and the European markets, said leading international property consultants Jones Lang Lasalle Asia Pacific CEO Peter Barge. Recalling the developments in the aftermath of the sub-prime crisis, which sent several lenders scurrying for cover, he said, countries like Japan, followed by China and India are attracting the attention now.
Unlike cities like London, which have been hit by the sub-prime, almost all Asian cities are holding on to the growth. “There is no oversupply anywhere, except Beijing, where projects were brought forward to achieve completion much ahead of Olympics. Its so unusual, for so many Asian cities to be doing so well,” he said. “A booming economy and massive developments, aided by a stronger Rupee, has placed India on reckoning, on par with China, which has a strong currency,” Mr Barge said. ET.
“The world is flush with money and it has to go somewhere. Off late, Japan has been attracting a lot of it, and India is set to attract like China. Because, debts are primarily important for real estate,” he said.
According to him, after several years, Japan is coming out of recession. And Tokyo, the world’s second largest real estate market and which was pressed down for long, has been attracting attention over last 2-3 years. While its the same with Singapore, where capital value of commercial properties have almost doubled over last 12 months, its a small place. compared to countries like Japan, China and India.
“There is lot of interest on India, especially in joint ventures. However, the developers do not need money, as most of the established players themselves are flush with funds, raised from public,” he pointed out. “Developers in India need joint ventures for expertise and money is not the primary criterion,” he added.
However, that’s not the case with China, where the government has made lending much more tougher. In contrast, India is in the right situation. “The deals are getting bigger on the property street. And in order not to miss out on the opportunity, the SEZs in India can open up more,” he said.
Mr Barge also expects more Indian realty companies to get listed in Singapore, which will open the doors wide in terms of opportunities. But, the real growth will happen, when Indian the government focuses its attention on infrastructure.
“I am aware the government is keen to develop infrastructure on a priority basis. And this move will surely pave way for more money to come in through private - public partnerships,” he said.

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