Market Outlook

The GPR/APREA AsiaPac Performance Snapshot tracks the dynamics of listed real estate securities (including REITs) across 12 AsiaPac countries/regions and eight sectors, over multiple time horizons.

•  Government bonds posted the least negative return in February 2018.
•  Equities and listed real estate were the strongest performers over the past five years.
•  On a ten-year basis, REITs outpaced rival asset classes, followed by listed real estate.

This article will investigate Investment into real estate - China

1. Legal Landscape
2. Foreign investment
3. Common foreign investment structure
4. Recent de-regulation of real estate FIEs
5. Other recent developments
6. Our observations on market

Just 160,000 square metres (sq. m.) of new and major refurbished supply is expected across Australia’s eastern seaboard markets of Sydney, Melbourne and Brisbane in 2018, representing less than 1.5% of existing stock. Of this space, the majority will be in Melbourne and has already been pre-committed. With business confidence in positive territory, we anticipate the uptake of stock to continue, despite limited availability in both Sydney and Melbourne. As a result, we expect vacancy to compress in all three markets, with Sydney forecast to be the tightest at approximately 3% by the end of 2018, the lowest level in over 25 years.

Occupier demand in the CBD reached the highest in 11 quarters in 4Q17, bring ing the full year CBD net absorption to the highest in three years.

Residential market remained optimistic in 4Q17. Transaction volume pf strata units in the prime districts eased slightly 1-o-1 due to the year-end holiday period. 

Retail sales excluding motor vehicles recorded over two consecutive quarters of growth, likely a result of the seasonal timed sales.

Amid stable stock and as tenants physically moved into their new premises, the business park vacancy rate eased for the sixth consecutive quarter in 4Q17.