Asia property investment strong

Cash flow into Asian property is not slowing in line with the credit crisis in the US, according to a new report.

The report says property investment in Asia increased 27 per cent to $121 billion in 2007. The document is being published by KPMG, the Asia Pacific Real Estate Association, and index provider FTSE.

While investment slowed in the second half of 2007 in Europe and North America, investment levels in Asia remained steady throughout the year. Many markets experienced real estate returns above ten per cent, higher than the global average.

This year appears do be growing at the same pace. For example, MGPA (a private equity fund manager) just launched a global fund that will invest mostly in Asia, to the tune of $3.9billion in equity. The fund has already committed $2.2bn to investments in Singapore, Japan, China and Thailand, and is looking at South Korea, Malaysia, Taiwan and Australia. North American investors make up 40 per cent of the fund.