The Asia Pacific property markets continue to offer attractive opportunities to investors. The DTZ Fair Value Index™ for Asia Pacific was unchanged in Q1 2014 at 60. Again, a score of 100 indicates that all markets are underpriced and zero that all markets are overpriced.
The Asia Pacific region has a less favourable balance of overpriced and underpriced markets than Europe. The European index score is 74 for Q1. We project this trend to continue over the next few years, with the Asia Pacific score to remain below Europe until 2018. Globally, markets face varying pressures from the rising cost of funds. But, Asia Pacific in particular suffers from uncertainties as to how QE tapering in the US will affect its emerging markets. Also, there are concerns on a prolonged credit crunch, or even a banking crisis in China.
Source : DTZ (Groupe UGL)