The recent capital outflow from the emerging markets, notably from India and Southeast Asia, was greater than the previous Asian Financial Crisis in 1997. Systemic liquidity risk has become an imminent concern that puts pressure on the region's asset pricing. Yet, there has been notable structural improvement in Asia, including: effective governance by policy markers, increasing depth and breadth of regional corporate activity, much healthier government balance sheets (for the most part), large accumulations of foreign reserves, and increased size and depth of domestic capital markets (including large sources of capital which are comparatively new to real estate investment). Therefore, our view is that Asia as a whole is far removed from the pre 1997 macro level vulnerabilities. The near term risk on a global scale, however, resides on the political ramifications of Syria. Several of the regional economies, including China, appear to be ready to act further to stimulate their economies should the global macro-economic situation take a turn for the worse.
Source : CBRE Global Investors