- Singapore was third among the 13 Asian markets in Q4 2017 in terms of investment volume, according to deals recorded in Colliers’ Asia Market Snapshot report
- Hong Kong set new luxury residential price; led regional investment sales with 71 en bloc transactions valued at USD14.7 billion
- Broad-based strength witnessed in office segment across major hubs
- Strong growth forecast for hospitality sector in Vietnam and Thailand
Singapore, 29 January 2018 - Leading global commercial real estate services firm, Colliers International (NASDAQ and TSX: CIGI) today released its 2017 Q4 Asia Market Snapshot Report with a detailed overview of the performance of property segments across 13 Asian markets in the fourth quarter of 2017.
Asian property markets ended 2017 with a flurry of activity that showed few signs of abating going into the new year. Although property investment activities were buoyant across most markets and sectors, the office segment in Hong Kong, Shanghai and Singapore stood out as a key focus for investors, signaling an improving business outlook on the back of a rebound in investment, trade and manufacturing.
According to deals in recorded in Colliers’ Asia Market Snapshot report, Hong Kong witnessed the strongest investment sales in Q4 2017 among the 13 Asian markets, with 71 transactions, valued at USD14.7 billion (SGD19.2 billion). This was followed by Shanghai with 17 deals which amounted to USD4.2 billion (SGD5.5 billion), and Singapore in third place, with four transactions that fetched USD3.03 billion (SGD4 billion).
Ms. Tang Wei Leng (邓慧玲), Managing Director at Colliers International, Singapore, says, “The optimistic economic outlook and cyclical upturn of the underlying markets should continue to drive investment demand for the residential and commercial sectors in Singapore. We also expect developers to continue replenishing their landbanks via collective sales and state land sales.”
The four deals done in Singapore in Q4 2017 were: USD1.2 billion (SGD1.62 billion) for the commercial site in Beach Road that was awarded to Guoco Land and its parent Guoco Group; USD714.6 million (SGD955.4 million) for a residential development site in Jiak Kim Street awarded to Frasers Centrepoint Limited; USD620.9 million (SGD830.1 million) for residential collective sale site Normanton Park sold to Kingsford Development; and USD494 million (SGD660 million) for prime commercial building Chevron House in Raffles Place which was sold to Oxley Holdings.
In Hong Kong, records were smashed as the hot property investment market continued to shine in Q4, led by a landmark deal involving the sale of 48 floors of the Centre, an office tower at 99 Queen’s Road Central for an eye-watering USD5.15 billion. Another star performer during the quarter was the luxury residential segment. An apartment sale at Mount Nicholson – in Hong Kong’s prestigious The Peak neighbourhood - broke the Asia price record, fetching over USD16,700 per square foot.
Given the healthy pool of cash-rich buyers and funds, as well as aggressive local and mainland Chinese developers, the upward momentum for Hong Kong property investment is expected to continue throughout Q1 2018, particularly in the office and residential sectors.
Meanwhile, Shanghai remained the most attractive en bloc market in China in Q4. Office, business parks and mixed-use assets with large office components continued to dominate the focus of investors, accounting for 15 of the 17 total transactions. The sale of mixed-use project, Eco City in West Nanjing Road for about USD942 million to a foreign investor was the biggest deal booked in the quarter. The outlook for the Shanghai investment market remains optimistic as several deals are in the final stages of negotiations and are expected to close in early 2018.
Continued growth is also witnessed in the hotel sector in Vietnam, where tourist interest is increasing and a successful year as APEC (Asia-Pacific Economic Cooperation) host has elevated the country’s profile; and Thailand, where visitor numbers continue to climb, contributing to interest in hospitality investments in the city-center.
Sentiment in some emerging markets, however, including Indonesia and India, remains cautious as investors gauge policy and regulatory changes amid an uncertain political environment. However, these changes and the ambitious development plans taking shape around the region will be a key driver of opportunity in 2018 and beyond.
To view a copy of the full Asia Market Snapshot Q4 2017 report, click here.
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