Hong Kong, 17 January 2019 – Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services, today released its latest predictions for the Asia property market in 2019. In this annual report Andrew Haskins, Colliers’ Executive Director of Research in Asia, outlines the key market trends and sector forecasts based on macroeconomic data and geopolitical factors.

Andrew Haskins, commented: “Slower growth in China and emerging signs of a slowdown in the U.S. cloud the outlook for Asian property. However, interest rates ought to rise more gradually than previously expected, holding funding costs down for developers and investors.”

Asian Markets Set to Slow

Mr. Haskins added: “Chinese real GDP growth will slow towards 6.0% in 2019, while Hong Kong and Singapore will also see lower growth in 2019 than in 2018. Japan and South Korea look more stable, while growth in India has rebounded sharply. Trade disputes remain a key concern, and signs that a slowdown is starting to take hold in the US may weigh on Asia. More positively, a probable slower pace of interest rate increases than previously expected should help hold down cost of funds for investors and property developers in most Asian markets.”

Office Sector: Rents Diverging

Demand from the technology and flexible workspace sectors is firm, but turbulent markets and trade tensions cloud prospects for finance and manufacturing groups. Supply of space should also jump in China, notably in the South. Office rents should therefore diverge in 2019. We expect average rent to rise 8% in Singapore and 4–5% in Bangalore, and more modestly in Tokyo, but to be flat or fall in Hong Kong, Shanghai, Beijing and Shenzhen. 

Logistics & Industrial Sector to Expand Further 

Logistics should see further strong expansion in 2019. In China, firm growth in e-commerce is driving demand for warehouse space, and low vacancy is pushing tenants into Tier 2 cities. South Korea sees similar positive trends. While growth in Hong Kong is more modest, investors are eyeing industrial assets for conversion potential. The granting of infrastructure status to the logistics sector in India heralds sharp expansion, and higher interest from developers and investors.

Retail Market Stabilising, But Challenges Remain

Conditions in retail property are uncertain. Besides the threat from e-commerce, we see ample new supply of retail space in several cities. Rent growth is mildly positive or mildly negative in Shanghai, Beijing, Singapore and Hong Kong. However, landlords and tenants alike face the long-run challenge of putting experience, entertainment and digital connection at the heart of their retail offering.

Investment Market to Slow, But Opportunities Remain

Transactions of investment properties totalled USD126 billion in 2017, an all-time high. We assume that transactions slipped 2% to USD122 billion in 2018 and expect a 5% dip to USD117 billion in 2019, mainly due to lower activity in Hong Kong. Demand is firm, and we still see appealing investment opportunities in Asia, especially office assets in Singapore, Tokyo and Bangalore, logistics assets in China (especially Tier 2 cities, where buildings are available) and other markets, and business and industrial park assets.

To download the full report, visit here

-- End --


About Colliers International Group 

Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is a top tier global real estate services and investment management company operating in 69 countries with a workforce of more than 13,000 professionals. Colliers is the fastest-growing publicly listed global real estate services and investment management 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, and through its investment management services platform, has more than $25 billion of assets under management from the world’s most respected institutional real estate investors.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. 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 is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.


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:

Michelle Shao 
Marketing Communications | Asia 
Colliers International 
Phone: (852) 2822 0541
Email: michelle.shao@colliers.com