FACTBOX: Asian property markets holding up despite credit woes

(Leading property industry figures at gathering at this year's Reuters Global Real Estate Summit to be held in London, New York, Singapore, Dubai, and Moscow from June 23-25. For exclusive news from the summit, click here)

While Western property markets have been hit hard by the global credit crunch, Asian commercial and residential markets are still generally healthy because their rise has been less dependent on the availability of cheap debt.

Some highly leveraged Australian firms have suffered and the Tokyo office market is cooling after a strong five-year run-up, but Asia's main cities are likely to see prices and rents hold firm rather than fall in the next couple of years.

Property investment in Asia grew by 27 percent last year to $121 billion, which was evenly allocated over the first and second halves of the year, unlike in Europe and North America, where investment slowed dramatically in the second half.

Here is a summary of trends in Asia's main property markets:

AUSTRALIA

The global credit crunch has hit some Australian property firms that depended on high levels of borrowing.

Centro Properties Group (CNP.AX: Quote, Profile, Research, Stock Buzz), an operator of shopping malls in the United States and Australia, has struggled to refinance its debt and has had to try to sell assets to raise cash.

Media reports have said U.S. private equity firm Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz) and a unit of General Electric Co (GE.N: Quote, Profile, Research, Stock Buzz) are potential buyers. Babcock & Brown Ltd (BNB.AX: Quote, Profile, Research, Stock Buzz) saw its shares slide this month on similar concerns about its debt.

With local transactions drying up and pressuring commercial property prices, capitalization rates have softened slightly.

Consultant DTZ says the investment yield on prime office buildings in Sydney has climbed to 5.25 percent, from 5 percent a year ago, and the firm forecasts yields will 5.5 percent by the end of this year.

Office rents are holding firm, supported by strong economic growth, powered by soaring commodities prices. DTZ forecasts average annual rental growth of 5.4 percent for Sydney offices between 2008 and 2012, although the growth rate may slow down for both cities as supply picks up in 2010.

Central Sydney office vacancies fell to an 18-year low of 3.7 percent in January, compared with 5.6 percent a year ago. In Perth and Brisbane, which have benefited from booming natural resource industries, offices are full.

Middle East petrodollars are starting to flow into Australian property as oil reaches record highs. Dubai state-owned property developer Nakheel doubled its stake in Australia's Mirvac Group (MGR.AX: Quote, Profile, Research, Stock Buzz) this year to about 12.5 percent.

But the residential market has been slowing down. The Australian weighted average median house price declined 2.7 percent to A$458,488 in March from December 2007, according to the Real Estate Institute of Australia.

JAPAN  Continued...