Expert Says Fed Rate Hike Makes Chinese Warehouses More Attractive
The Federal Reserve just raised rates a quarter-point and signaled two more possible moves this year. Among other things, the decision makes Asian real estate markets more attractive.
LaSalle Investment Management's head of research and strategy for Asia Pacific, Elysia Tse, said Asian markets are going to experience a much slower pace of interest rate increases than the U.S., Reuters reports. Her comments speak to fears many investors have that rising rates hurt property values, and let investors know where to make their bets if avoiding such increases is a priority.
Tse said China has huge growth potential and highlighted industrial real estate as an attractive investment opportunity in the country. She said the country’s lack of modern warehouses and booming e-commerce operations allow investors to yield between 5.75% and 6.25% on warehouse properties outside major Chinese cities.