The US residential property market should show signs of recovery from the crash of 2007 and 2008 in the next three according to analysts speaking at the Asia Alternative Investment Network in London this week.

Dr Chung-Hong Fu, Managing Director of Timberland Investment Resources Europe, predicted: “The overhang of properties from 2007/2008 has been eliminated and we expect a recovery in the US property market in the next three years.

“As a result of this and other global factors, we anticipate a real market for timber going forward. Timber is a strong hedge against inflation and it allows investors the opportunity to diversify into different markets both in the US and emerging markets. It is a sound proposition for those wanting to take a longer view and is an ideal investment for patient capital offering excellent diversification.”

Dr Fu reported the timber niche market is worth approximately USD65billion of investment grade forestry.

Also speaking at the event was Tony McGough, Global Head of Forecasting and Strategy at DTZ, who further endorsed Dr. Chung-Hong Fu’s prediction.

McGough said: “There will be opportunity in the residential property market in the US especially in areas such as California and Florida where there is fundamental growth opportunities.”

Senior Director of IPD Peter Hobbs gave an overview of the Asian market, commenting on the situation post the crisis and how investors can best manage risk across multiple markets and manage their exposure more effectively.