Owners wary of lowering prices for properties

Although Asian markets have been affected by slowing econom¬ic growth and unsettled capital markets, financially sound institu¬tional investors, including pension and sovereign wealth funds, remain active across major cities in Asia, and direct commercial property transactions in Asia were up moderately year on year in the first half of 2008, according to the company.

A number of large transactions were completed in Thailand, with the focus squarely on hospitality properties and the country's major resort markets, where investment sentiment remained robust on the back of sustained growth in the hospitality and tourism sector.

Investment activity in the Bangkok property market, in com¬parison, was highlighted by the acquisition of a plot of land in Sathorn for Bt1.4 billion by AIA, demonstrating that investors retain confidence in the sector's prospects.

Other notable transactions in the capital included the sale of mul¬tiple hotels and commercial prop¬erties.

Regionally, Japan continued to attract the most investor interest, accounting for over 30 per cent of Asia's major investment transac¬tions.

Singapore's investment market turned quieter compared with the preceding year.

However, financially sound investors remained fairly active and Bt321.6 billion worth of invest¬ment transactions were recorded in the first half of 2008.