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Asia Pacific property markets continue to generate long-term opportunities despite COVID-19 outbreak

Colliers International (NASDAQ: CIGI; TSX: CIGI), a global leader in commercial real estate services and investment management firm, today released its Asia Pacific Market Snapshot Q1 2020 report. This multi-sector report examines the prior quarter’s property market performance in 19 Asia Pacific markets and provides forecasts for the quarter ahead.

Terence Tang, Managing Director of Capital Markets, Asia commented: “Even though signs of the pandemic weighing on sentiment were seen across the region, opportunities are emerging across some markets and industry sectors in Asia Pacific. While the full extent on regional property markets is still unclear, robust government stimulus packages and solid economic fundamentals are cushioning impacts.”

Antonio Wu, Deputy Managing Director of Capital Markets, Hong Kong, explained: “Near-term opportunities for Hong Kong’s real estate has dimmed as social unrest paired with COVID-19 has contributed to an economic slowdown. With institutional investors reluctant to take on risk, most transactions that took place in Q1 were done by local private investors with well-established on-the-ground knowledge. As they continue to seek opportunities, especially around distressed assets, we can expect to see an extension in the negotiation period due a misalignment on price.”

Please see below key points from the report:

  • Government policies to help Chinese markets recover from the COVID-19 outbreak
  • Property markets in Hong Kong and Singapore offer value-buying opportunities for long-term investors amid uncertain outlook
  • Hong Kong’s private local investors account for majority of transactions in Q1 as institutional investors ‘wait and see’ as they opt to mitigate risk
  • Japan’s logistics segment expected to benefit; office segment retains appeal; hotel and retail sectors hit hard by the COVID-19 outbreak
  • Seoul’s office sector performed well, but prolonged COVID-19 outbreak could hurt sentiment
  • Resilient property markets in Australia and New Zealand face a temporary slowdown