Property markets are on the rise across Asia

SINGAPORE (Reuters) - Property markets are on the rise across Asia, fuelled by cash-rich investors looking for higher returns, the booming economies of China and India and the emergence of Japan from over a decade of economic stagnation.

With global investors increasing allocations to property and diversifying geographically, investment in Asia jumped 43 percent to $94 billion in 2006, consultants Jones Lang LaSalle say.

The flow of capital into Asia shows no sign of abating. The property arm of Morgan Stanley (MS.N: Quote, Profile, Research), for example, has earmarked around 60 percent of a $8 billion fund it has just raised for Asia -- and Japan, China and India in particular.

Future trends will be a key theme for top executives from the world's property industry at the Reuters Real Estate Summit in London, New York and Singapore on June 25-27.

Here is a brief round-up of markets in the region.

JAPAN

-- As Japan's economy recovers, office buildings have become the most coveted asset, sending capital values soaring in Tokyo

-- Because of tight supply, analysts see Tokyo office rents rising another 60 to 70 percent to a cyclical peak around 2010

-- While the vacancy rates for top-notch buildings fell to 0.7 percent from 1.0 percent during 2006, average annual rents climbed 55 percent in the year