Unfortunately, it looks as though the coronavirus and its numerous mutations will be with us for many months to come. We can argue the origins of the coronavirus but it does seems to have originated from the Far East with China mentioned as the main suspect. Putting that to one side, how will Asian real estate perform going forward? Has the coronavirus pandemic dealt a bitter blow to the confidence of property investors looking to Asia? Alternatively, is now an opportune moment to increase your Asian real estate exposure?
Post pandemic I've heard that Hong Kong, for example, is a great place to put your money. The legal system is stable, the quality of life is high, and the local economy, and thus rental demand, is strong. However, with one of the world's most expensive real estate markets, this destination may be out of reach even for the average millionaire. From what I have read, this is also true in Singapore post-pandemic. As another modern city with a transparent real estate market and a strong economy. However, because of the higher prices, average returns are only 4%.
In my opinion post-pandemic, Hong Kong and Singapore are excellent choices for those looking to store their wealth, but they may not be appropriate for the average investor who does not have millions to spend or is looking for a more aggressive strategy.