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Retail sales fell -1.7% (m-o-m) in August. This fall was off the back of lockdowns in Sydney, Melbourne and Canberra which resulted in a sharp decline of consumer spend on clothing and footwear and at cafes and restaurants. This is expected to rebound strongly in Q4 once lockdowns lift.
Consumer confidence has shown continued recovery, in part driven by stronger than expected employment outcomes. Consumer sentiment index grew 2.0% m-o-m in September to measure 106.2 off the back of roadmaps out of lockdowns being released.
Rents were stable in most markets with large format retail recording strong net face rental growth of 9.9% y-o-y.
Yields sharpened across all assets classes as capital continues to look to the retail sector for solid returns.
Transaction volumes in Q3 2021 totalled $2.12b, up 91% on the same period in 2020 which was heavily impacted by COVID restrictions.
This article was originally published in https://www.cbre.com/
Download the Report Read MoreVacancy rate rising but demand growing for large-scale units in Tokyo
Tokyo: Grade A minus vacancy rate reaches 4% for first time in seven years
All-grade vacancy rate rose by 0.8 points q-o-q to 3.6% in Q3 2021, led by increase in vacancy in existing premises. In particular, Grade A-minus vacancy rate rose the largest among all three grades. All-grade rent was down by 0.8%, with Grade A rents falling the most. With significant new supply slated for 2023, landlords are lowering rents to secure tenants.
Osaka: Vacancies filled in Grade B buildings
The all-grade vacancy rate rose by 0.5 points q-o-q 2.8% in Q3 2021. With many tenants remaining cost-conscious, smaller premises are in higher demand than larger spaces, meaning that Grade B units are increasingly favored. Rents fell across the board in Q3 2021, with Grade A rents dropping sharper than those for Grade B buildings.
Nagoya: All-grade vacancy exceeds 3% for first time in four years
The All-grade vacancy rate rose by 1.0 points q-o-q to 3.8% in Q3 2021. Larger premises tend to require more time to secure new tenants. With pre-leasing of units slated for completion also sluggish, the vacancy rate is projected to continue to rise. All-grade rents were down 0.1% q-o-q, driven by lowering of asking rents for Grade A offices with relatively large vacancies.
Regional cities (Sapporo, Sendai, Saitama, Yokohama, Kanazawa, Kyoto, Kobe, Takamatsu, Hiroshima, Fukuoka): Subdued tenant interest in large-scaled office space
The All-Grade vacancy rate for Q3 2021 rose in six of 10 regional cities, fell in two, and remained unchanged in two. Smaller units of 100 tsubo or less secured tenants across a range of industry sectors looking to expand or set up new establishments. All-Grade rents rose q-o-q in five of 10 cities, fell in three, and remained unchanged in two. The cities whose rents rose were due to contracted rents of newly completed buildings pushing up the overall average.
This article was originally published in https://www.cbre.com/
Download the Report Read MoreFollowing the sobering assessment of climate risk by the UN’s Intergovernmental Panel on Climate Change (IPCC) and ahead of the imminent COP26 summit in Glasgow, in our latest report, Real (E)state of Emergency, we give our view on the impetus for the property industry across Asia Pacific to act.
Download the Report Read More"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
“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
“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
“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
“Amid hopes of fresh leadership, Japan’s faster pace of vaccinations is paving the way for new economic progress.”– Tetsuya Kaneko
“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
“The need to deploy investment capital is greater than the obstacles posed by the pandemic.” – Alan Cheong
“Officetel prices are booming as a result of the ongoing housing shortage.” – JoAnn Hong
“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
“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 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 MoreThis article was originally published in https://en.savills.com.cn/
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