Asian real estate markets continue to outperform Europe and the next quarter is looking good, said the Royal Institute of Chartered Surveyors’ latest property survey.

In its Global Commercial Property Survey Q4 2012, published last week, RICS said data shows a broadly positive occupier and investment momentum across Asia, the UAE, North America and Russia. The survey also paints an optimistic picture for the next quarter, with majority of Asian markets expecting investment demand to grow.

In China, the market continues to perform well on both the occupier and investment sides, RICS said. Strong domestic consumption remains a key support for the former, although the new supply coming onto the market suggests the positive momentum in rents may moderate over the coming months. Meanwhile, the investment market continues to be underpinned by a firm trend in new enquiries to purchase property, according to the survey.

Indicators in Hong Kong still remain positive, particularly regarding the prospects for rents and capital values. Significantly, the further cooling measures introduced by the new government on residential property might have diverted investors to commercial property. Tenant demand picked up at a slightly quicker pace in Q4.  As a result of rising investment activities, both investment enquiries and capital values edged up at a faster pace.

Meanwhile, there is an increasing evidence to suggest that Japan’s commercial property market also seems to be improving with positive indicators on the occupier side. Investment enquiries and future transaction expectations both rose sharply. Nevertheless, the more positive developments in the investment market have yet to fully feed through to confidence in capital values. For the moment, values are expected to remain broadly stable, according to RICS.

“Capital will likely continue flowing into Asia in 2013, driven by the region’s stronger growth prospects, global excess liquidity and risk appetite. This should lead to a further pick up in real estate demand in key Asian markets, from occupiers and investors,” RICS senior economist Andy Wu, said.

“Specifically, the expected economic recovery and increasing levels of business and consumer confidence in the region will likely result in higher-than-expected investment activity this year,” he added.

On the occupier side, Singapore remains a concern for RICS: “At this point, there is little sign of a reversal in the recent drop in demand for space. This is particular the case for offices. As a result, rents are likely to remain under pressure in the near term,” the organisation said.