Market/Finance News Blog: Continued investment in Asia Pacific

By the resi financial blog team, 11 November 2014

Market/Finance News Blog: Continued investment in Asia Pacific

According to a recent survey of over 600 business leaders regarding the prospects for business in Asia Pacific by PricewaterhouseCoopers (PwC), there is increased confidence among executives in the region.

The survey found that 67 per cent of Chief Executive Officers intend to increase their investments in the Asia-Pacific Economic Cooperation region, while 46 per cent say they are "very confident" of growth over the next year. The confidence rating is up 10 points from two years ago and 4 points from last year.

Spreading growth is both in fixed capital and human resource, as well as other areas. Fifty seven percent of respondents intend to build or expand facilities in the region, while 38 per cent expect their employment numbers to increase by at least 5 per cent over the next 3-5 years.

Dennis M. Nally, Chairman of PwC International Ltd., noted that businesses would need to be agile in order to meet changing consumer demand.

"Businesses are investing in a different Asia Pacific with rising numbers of urban middle-income consumers demanding new, technologically advanced products and services from business and governments," said Mr Nally. 

Local financial markets

There is an opportunity for local investment as lending figures reveal a decrease in the amount of home loan lending taking place, excluding refinancing, according to the Real Estate Institute of Australia (REIA).

In a 10 November statement, the REIA pointed to declining home finance figures in September, stating that the mortgage market seems to be stabilising, eliminating the need for macro-prudential tools.

"The September 2014 lending figures indicate a moderating market with September being the eighth consecutive month of modest drops in lending levels if refinancing is excluded," said REIA President, Peter Bushby.

The opportunities for both commercial investment into fixed capital and the residential housing market should give many business owners and fund managers some options to think about.

If you are considering a commercial loan for a business investment, talk to a resi loan specialist today.

Categories: Business Owners, Property Investment