Overall activity in Asian property markets remains firm, and recent developments brighten prospects for the coming year and should raise confidence among investors, developers and occupiers.
Growth in Asia is slowing but not collapsing. Certain cities continue to grow fast, notably in India and South China. Very low interest rates should lift confidence among tenants and owners.
Office markets have diverged. Bangalore, Manila and Singapore should see firm rent growth over 3-5 years. Conversely, rent should stay under pressure in Hong Kong and to a degree Shanghai, though they remain top tenant locations.
Despite uncertain conditions, the leading Asian cities recorded firm investment activity in 2019. We now predict a 7% increase in total investment volume in 2020. Office assets in Singapore, Tokyo and Bangalore remain attractive, with Singapore and Tokyo hotels and retail assets also appealing.
Logistics in China, Korea and India and data centres also promise higher returns, but investing in these areas requires expertise.