Thought Leadership

CHINA  

"Excessive leverage and tighter financing conditions for both developers and homebuyers have heaped pressure on the market, causing some spectators to suggest an impending real estate collapse. Seasoned watchers, however, expect a drawn-out, managed asset restructuring of heavily indebted developers unable to meet their repayment obligations as well as assurances that home buyers, suppliers and employees are taken care of.” – James Macdonald 

HONG KONG

“Fresh challenges have emerged as the Evergrande saga begins to unfold and mainland authorities move to regulate a wide range of industries with negative implications for office demand, while an assured retail market recovery remains elusive.”– Simon Smith

INDIA 

“Decision-delays owing to the second wave of pandemic led to a noticeable slowdown in investments. PE investment inflows into the Indian real estate sector during Q3/2021 declined by 45% QoQ. The silver lining, however, was seen in data centres and life science R&D assets, which attracted investors during the quarter.” – Arvind Nandan

INDONESIA 

“Positive news from the management of the pandemic has boosted confidence among developers who are preparing new launches or rolling out expansion plans. Sales are rising in the residential market while interest from foreign investors in the data centre and logistics sectors continues to strengthen on the back of robust demand from both domestic and regional players.” – Anton Sitorus

JAPAN 

“Amid hopes of fresh leadership, Japan’s faster pace of vaccinations is paving the way for new economic progress.”– Tetsuya Kaneko 

MALAYSIA 

“Total transaction volume in the first three quarters of 2021 amounted to RM5.7 billion, a notable 30% increase compared to the first three quarters of 2020.” – Nabeel Hussain 

SINGAPORE 

“The need to deploy investment capital is greater than the obstacles posed by the pandemic.” – Alan Cheong

SOUTH KOREA

“Officetel prices are booming as a result of the ongoing housing shortage.” – JoAnn Hong

TAIWAN 

“The Taiwanese Central Bank announced another round credit controls to cool the market, however, China’s power cuts might be another catalyst for Taiwanese companies to shift production back to Taiwan which will support further price increases in the industrial property sector.” – Erin Ting 

THAILAND 

“A tentative easing of lockdowns and improved vaccination rates are providing some relief to the hard-hit economy while New Economy companies continue to emerge as key drivers of demand for offices, data centres and logistics space.” – Palathip Chunhasomboon

VIETNAM 

“Vietnam remains an attractive investment destination for foreign investors from Japan, Korea and Singapore, with the real estate market achieving total registered foreign direct investment of US$1.78 billion in the first 9 months of the year. Projects located in satellite areas, with space to develop infrastructure and value add facilities, are the focus.” – Troy Griffiths

This article was originally published in https://www.savills.co.jp/

Download the Report Read More

• In Q3/2021, Wuhan’s retail property market saw no new supply and witnessed the closing of Hanjie Wanda Plaza in Zhongnan Zhongbei Road, which will be transformed into an SKP by Wanda Group and Beijing Hualian Group. The citywide retail property stock decreased to 6.64 million sq m by the end of Q3/2021.
• Upgraded stock projects brought several central China first stores, especially in the luxury retail sector.
• Driven by capital investments, popular F&B brands expanded vigorously. Several coffee and bakery brands opened their first stores during the quarter.
• Due to the tenant adjustments in current projects, the citywide vacancy rate decreased 1.0 percentage point (ppt) to 8.1% quarter-on-quarter (QoQ). The prime area’s leasing performance took the lead, with its vacancy rate falling 1.8 ppts to 9.3% QoQ.
• The average rent for the ground floor of citywide shopping malls rose to RMB 308.2 per month per sq m, with the rental index moving up 0.7% QoQ and 0.3% year-on-year (YoY).
• In Q4/2021, Wuhan’s retail property market will see the delivery of Huafa & City Hub, Wuhan Joy City, Wanda Plaza (Hanyang) and Vanke Future Centre, adding over 450,000 sq m new supply to the market.

This article was originally published in https://en.savills.com.cn/

Download the Report Read More

• In Q3/2021, Wuhan’s Grade A office market witnessed no new supply, so the citywide Grade A office stock remained at 2.26 million sq m.
• Information technology, business services and consumer services saw active leasing demand in the quarter, respectively accounting for 26.3%, 16.0% and 15.1%, ranking the top three among all industries.
• Rent declines released upgrade and relocation demand, which took up 44.2% of the citywide total, while new set-ups were also in demand, accounting for 26.5%. The implementation of the “double reduction” policy for compulsory education has driven out many online education companies.
• The citywide Grade A office net take-up recorded 40,000 sq m, a 12.1% quarter-on-quarter (QoQ) decrease. By the end of the quarter, the average Grade A office vacancy rate declined 1.8 percentage points (ppts) to 35.1%.
• The citywide Grade A office average rent has fallen for seven consecutive months, but with a narrowing decline range. By the end of Q3/2021, the average rent for Grade A office fell to RMB102.2 per sq m per month, while the rent index fell 0.4% QoQ and 4.1% year-on-year (YoY).
• Wuhan’s Grade A office market is expected to introduce TF Building and Huaxia Bank Tower next quarter. Due to construction delays, several landmark Grade A buildings will postpone their delivery to 2022.

This article was originally published in https://en.savills.com.cn/

Download the Report Read More

The past two years have seen an unprecedented degree of disruption—from the pandemic to climate-related events to social justice protests. This convergence of global challenges has heightened focus on the environmental, social and governance (ESG) issues and trained a spotlight on corporate real estate (CRE) leaders' purpose and mission.

This article was originally published in https://www.cbre.com/

Download the Report Read More