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Colliers: 2017 Q4 Asia Property Market Snapshot Report
Colliers International today released its 2017 Q4 Asia Market Snapshot Report with a detailed overview of all property segments’ performance across 13 Asian markets during the last quarter of 2017.
Across most markets and sectors there was a lot of activity throughout 2017. However, office segments in Hong Kong, Singapore, and Shanghai stood out as key focus for investors. Antonio Wu, Deputy Managing Director for Colliers International, Hong Kong, comments: “the overall sentiment remains positive, investment activities in both retail and industrial sectors have increase. The luxury high-end residential sector has achieved record prices, while office remains the most active sector of them all – 71 transactions worth USD14.7 billion.”
Investment activity in Hong Kong gained further momentum in Q4, with a new record set in the luxury residential market (an all-time Asia high for Mount Nicholson sold for over USD16,700 per sq ft). Given the healthy pool of cash-rich buyers and funds, and aggressive local and mainland Chinese developers, this upward momentum is expected to continue throughout Q1 2018, particularly in the office and residential sectors.
Singapore also witnessed a strong finish to the year on the back of better than expected economic conditions, with developers and investors aggressively pursuing deals across the residential and commercial sectors. The broadly positive economic outlook should continue to drive investment demand in these sectors and encourage developer participation in collective and land sales.
In Shanghai, office, business park, and mixed-use assets continued to dominate the focus of investors – accounting for 15 of the 17 total transactions this quarter. Plans to develop the city into a national and global hub of finance and innovation will help ensure that it remains China’s most active en-bloc investment destination in 2018. Investments remained the key driver behind acquisitions, accounting for 13 of the 17 transactions, totaling USD4 billion or approximately 93% of the total transaction volume for the fourth quarter. These positive trends are expected to continue throughout Q1 2018.
Still, sentiment in some emerging markets, including Indonesia and India, remains cautious as investors gauge policy and regulatory changes amid an uncertain political environment. These changes and the ambitious development plans taking shape around the region will be key drivers of opportunity in 2018 and beyond. In China, for example, two urban redevelopment site transactions in the Pearl River Delta in Q4 totaled USD1.1 billion, while urban master plans to transform Beijing, Shanghai, and Chengdu into international gateways or global cities by 2035 will pave the way for attractive residential and commercial investment opportunities.
The industrial and logistics sector also offers sound investment opportunities in markets such as the Philippines, where an influx of manufacturing investments and the rise of e-commerce are fueling demand, and Myanmar, where infrastructure remains limited but the success of existing special economic zones is encouraging local and foreign investment.
Continued growth is also witnessed in the hotel sector in Vietnam, where tourist interest is increasing and a successful year as APEC host has elevated the country’s profile; and Thailand, where visitor numbers continue to climb and contribute to interest in hospitality investments in the city-center.
To view a copy of the full Asia Market Snapshot Q4 2017 report, click here.
