Several months ago, I briefly wrote about the capital available for investing in Asian real estate. Amidst the credit crunch, my worry was that capital for Asia might dry up and exacerbate the downward price spiral with dire consequences for the investors who have been seeing the value of their portfolios decrease considerably in the recent past. The silver lining of the otherwise bad situation was that many real estate funds raised prior to the crisis had plenty of cash that was sitting on the sidelines waiting for the price correction and more attractive deals.

Since then, two interesting trends have transpired in the markets. First of all, although the prices have corrected somewhat in most of the Asian markets, especially in Japan, the widely anticipated price drops in China have not materialized, and many fund managers are still sitting on the sidelines. While attending real estate investment conferences in Asia, I have heard many fund managers complain that the prices i