By Mark Di Tommaso
Owner/Broker, 8 West Property Management
February 28, 2015
San Diego Property Management and Investment is a local activity that takes place in the widest possible context. San Diego is a world class city after all and its market is significantly influenced by worldwide investment trends.
In fact, as a group, the world’s largest investors (those who have investments of $30 million or more in play) are putting a greater share of their wealth in real estate. During the 2008 to 2012 period, large deal real estate investment rose from 146 to 308 billion (a 111% increase). In contrast, corporate investment only rose 43% to a total of $594 billion.
Such investment trends are of more than academic interest. The great majority of us who are far less fortunate investors should take note because the big investors have the potential to drive up real estate values in the areas they favor.
It is largely thanks to the new found wealth in Asia that we have such a dramatically increased volume of investment to take note of. However its motivation and the disproportionate share of resources invested has been more a matter of culturally based desire to diversify and better secure this new wealth.
The outsize potential of Asian investment has become obvious. At a time when the Chinese are being exposed to stories about real estate selling in Detroit selling for the price of a pair of shoes –Wealthy Asians as a group have put 28%of their resources in real estate vs. 6% by similarly rich North Americans and 8% by the same cohort in Europe.
We would all be wise to keep an eye on the geographic reach of Asian investment. According to the most recent statistics, Asians have up to this point invested 95% \of their real estate money in cities.
With experience and satisfaction of initial expatriate demand for personal residences, there is likely to be a gradual shift of emphasis into suburbs and waterfront property. The impact of those dollars promise to be significant. Especially for those with a vested interest in suburban and waterfront oriented San Diego Property Management and Investment.
