Key property markets in Asia holding strong against global economic uncertainty

SINGAPORE (EDGEPROP) - Global political and economic uncertainties, coupled with persistent trade tensions, kept sentiment cautious in Asia’s property markets in 3Q2019. This caused a decline in transaction volumes in some major cities such as Shanghai and Hong Kong, according to an October 2019 market report by Colliers International.
However, real estate prices in key bellwether markets such as Singapore are holding up well, and this trend is expected to continue until the end of the year as funds and investors hold out for better times to return, says Terence Tang, managing director of capital markets, Asia, at Colliers International.
Key property markets like Singapore are holding up well against global political and economic uncertainties (Pictures: Pixabay)
Tang Wei Leng, managing director of Colliers International Singapore, adds: “Based on feedback and enquiries from investors, the office sector [in Singapore] will continue to be highly attractive and we envisage a few more acquisitions to be completed before the year ends.” In particular, prime office assets in the CBD remain appealing given the city’s status as a financial hub.
There are also contributing factors such as rental growth, low vacancies, and limited new supply. Older buildings that qualify under the government’s rejuvenation schemes could also encourage further interest to unlock their investment potential, she says.
In South Korea, 11 office properties with a combined value of close to US$2 billion ($2.73 billion) were transacted in 3Q2019, and aggregate transactions in the sector could top US$8.5 billion this year. Seoul’s CBD, Gangnam Business District, and Yeouido Business District saw increased take-up that helped push down vacancy rates. Most transactional activity came from technology firms and headquarter relocations, and investment was encouraged by prolonged low interest rates and abundant liquidity, the report says.
Office transactional activity in Seoul, South Korea came from technology firms and headquarter relocations
Over in Hong Kong, the retail property sector was especially hard-hit by declining tourist numbers, with completed transactions marked by significant price reductions for recent deals. Institutions with...