Asia's emerging markets sold off in the wake of the surprise win for now U.S. president-elect Donald Trump, but the region's property investments may actually benefit, analysts at Colliers said.
"Emerging market financial assets, including property, have been unpopular ever since the global financial crisis, whereas developed market assets, in particular U.S. assets, have been in strong demand," Andrew Haskins, executive director of the global real-estate services company, said last week.
"Now, the combination of Brexit and Mr. Trump's election in the U.S. over the medium term should [serve] to remind investors that you can have surprises in developed as well as emerging markets," he said. "That should mitigate long-standing political and economic concerns about Asia."
He expected that the premium returns that investors demand for the perceived higher level of risk in Asia should come down, boosting appetite for assets in the region.
But while Trump's election win was broadly unexpected, Haskins said Colliers wasn't significantly changing its generally positive economic forecasts for Asia Pacific.
"Growth in China and Hong Kong so far this year has exceeded expectations. Growth in India has been very strong. Growth in Australia is strong," he said. "So we are optimistic about the overall direction of Asia Pacific economies."