Singapore and Hong Kong are both witnessing overpriced property markets, and this has resulted in one investment management firm steering clear of property investments in both Asian cities.
In an interview with Asia Investor Mark Gabbay, co-Chief Executive for Asia-Pacific at LaSalle Investment Management, revealed that his company believes valuations for office and mall properties in Singapore are at their peaks, and offer low yields in comparison with other markets.
The company has entered the Australian residential market and is also looking for opportunities in Korea.
Gabbay added institutional investors will only return to the city-state if markets soften significantly. He said that may happen within 12 – 18 months if sentiment continues to deteriorate.
Credits: Property Guru