Market Outlook

Just as trade-related tensions appeared to be easing between the U.S. and China, the Asia Pacific region found itself at the forefront of the COVID-19 outbreak. The U.S.-China phase one trade deal was signed on Jan. 15, just as the coronavirus was becoming evident in Wuhan, Hubei. Asia Pacific became the first region to experience the real economic repercussions. China’s GDP growth will be dented, which in turn will exert economic stress on the Asia Pacific region and the global economy as a whole.

This guide gives a brief comparative overview of certain key insights to the real estate industry in Cambodia, China, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

• The novel coronavirus outbreak, first reported from Wuhan city in Hubei province, central China, represents a new downside risk for the regional economy.
• The first case of the coronavirus, now formally named COVID-19 by the World Health Organization, was reported on Dec. 31, 2019, and there have since been multiple developments with the virus and much speculation on the impacts.
• To help better understand the current and future impact on commercial real estate in key markets in Asia Pacific, Cushman & Wakefield has compiled their initial guidance and analysis in our Potential Impacts of the COVID-19 Pandemic on Commercial Real Estate in Asia Pacific report, which you click the Download button below.

We expect a global economic recession to eventuate. The key question is how quickly the economy bounces back. This mostly depends on how rapidly COVID-19 is contained. We believe that real estate in general will see strong investor support in the medium term due to the increased need for yield alternatives given record low bond yields on one hand, and, even if the equity market bounces back, a desire for stable asset classes on the other.