This year has been a year marked by major events such as Brexit and the U.S. presidential election. But the real estate sector remains robust despite some short-term market volatility, says Jones Lang LaSalle Incorporated.
BPE Asia Real Estate, an affiliate of Baring Private Equity Asia, has raised US$365 million for its inaugural real estate fund. Named BPE Asia Real Estate Fund, it is one of the largest first time real estate funds raised by an independently owned manager in Asia, according to a company announcement. The news came one month after the firm reached a final closing of its sixth fund, the Baring Asia Private Equity Fund VI, at a hard cap of US$3.988 billion.
Despite economic uncertainties and market volatility, global investors are allocating more capital to invest in Asia's real estate sector. Private real estate funds targeting Asia have raised a total of US$10.5 billion in 2013, up from 2012's total of US$7.9 billion and US$5.4 billion in 2011, according to data released by private equity research firm, Preqin.
According to Knight Frank’s latest Global House Price Index report for Q3 2012, house prices around the world have risen on average by just 1% in the last 12 months. However, Europe was the only world region to see prices decline in the last year. In Asia Pacific region, although price growth is slowing, the Hong Kong house price index, with a 14.2% growth in the 12 months to September, only seconds to Brazil among 55 mainstream residential markets across the world. Meanwhile, Hong Kong is one of the six markets which recorded double-digit annual price growth in the year to September. The other five markets are Brazil, Turkey, Russia, Colombia and Austria.