HONG KONG, 23 APRIL 2018
— Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services today released its Asia Market Snapshot Q1 2018
report with a detailed overview of all property segments’ performance across 15 Asian markets during the first quarter of 2018.
Terence Tang, Managing Director of Capital Markets and Investment Services at Colliers International, Asia, commented: “While the first quarter of 2018 proved unsettled, with concerns about a global trade war and heightened global market volatility, Asia’s property sector remains buoyant overall, supported by the region’s robust growth and forward-looking government policies. Large scale infrastructure investments in countries such as Japan, China and Indonesia will continue to create opportunities for investors, while major markets such as Hong Kong and Singapore are likely to benefit from the perception of property as a safe haven during uncertain times.”
Infrastructure set to surge
Many Asian governments are pursuing ambitious infrastructure projects that have the potential to transform property markets. In Indonesia, for example, an unprecedented government spending drive has boosted the outlook for developments around up and coming transportation hubs. India, meanwhile, has taken steps to encourage the construction of affordable housing, which should lend momentum to the residential sector, while Japan’s property market is expected to remain strong in the run-up to the 2020 Tokyo Olympics. In Chinese cities such as Beijing and Chengdu, steps to improve accessibility and connectivity are enhancing the appeal of decentralised areas, which have seen a marked pickup in buying activity.
Volatility may lead to upside
As political and economic uncertainty dims the outlook for other assets, prime Asian property markets like Hong Kong and Singapore could see more capital inflows. Both the mass and luxury residential markets in Hong Kong continue to hold up well, with a house at Mount Nicholson recently sold for the equivalent of over USD19,000 per square foot. Singapore has seen a surge in residential collective sale activity with over USD4 billion transacted in the first quarter of 2018 alone, approaching three-quarters of the total last year.
Seoul, Bangkok set new records
Investment activity looks set to pick up in Seoul’s prime office market, with several major deals likely to close in the coming months. The recent purchase of the K-Twin tower by Samsung SRA Asset Management set a new record for South Korea’s commercial property sector, recording a unit price of over USD7,000 per sq m. In Bangkok, meanwhile, the sale of the British Embassy site in the commercial heart of the city for USD591 million marked the largest land deal in Thailand’s history.
Positive outlook for Shanghai
Shanghai remained China’s most active property investment market in the first quarter, with deals totaling over USD2 billion. While recent steps to tighten control over lending to the real estate industry may squeeze some segments of the market, projects with stable income streams will continue to attract investor interest, particularly those aligned with the government’s efforts to upgrade the city’s industrial base.
Industrial, logistics witness strong growth
As regional governments increase their focus on developing or revitalising local industries, industrial property markets are looking more dynamic. In Vietnam, where the industrial sector expanded at a rate of nearly 10% in the first quarter, investors are actively searching for warehousing and logistics opportunities. Similarly, in Myanmar where manufacturing FDI remains close to all-time highs, the sector is poised for strong growth as more companies look to set up shop in the country. The high future growth and development potential of these and other Asian markets mean this is likely to remain a major investment theme for the long term.
To view a copy of the Asia Market Snapshot Q1 2018
report, click here
-- End --
About Colliers International Group
Colliers International Group Inc. (NASDAQ & TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers has also been ranked the number one property manager in the world by Commercial Property Executive for two years in a row.
For the latest news from Colliers, visit Colliers.com
or follow us on Twitter
: @Colliers and LinkedIn
. For the latest news on Colliers International in Asia, visit Colliers Asia
or follow us on Twitter
: @ColliersAsia and LinkedIn
For further information, please contact:
Associate Director, Content & Media
Marketing Communications | Asia
Phone: (852) 2822 0541