Asia-Pacific Property Markets Defy Higher Borrowing Costs

Despite higher borrowing costs in the wake of the US Federal Reserve's interest rate increase, property markets in Asia-Pacific are likely to remain attractive, analysts say.

Mainland China was the region's most active real estate market in the second quarter of this year, with investment surging 154 percent year-on-year to $13 billion, according to financial data provider MSCI. Japan ranked second with $9.7 billion worth of deals, followed by Australia with $8 billion.

Savills' Emily Fell notes that cross-border volumes in the region have increased by around 30 percent so far this year, but attributes it to a shift in investor strategy rather than a return to pre-rate hike levels.