Cushman & Wakefield reports positive outlook for Asia Pacific
Positive economic momentum and steady job creation across Asia Pacific will remain a strong catalyst for office property demand and asset performance in most of the region’s 25 major cities, according to Cushman & Wakefield.
Construction completions are expected to peak in 2017, which will push up vacancies and ease rent increases in most parts of the region. For emerging markets, this deceleration in rent growth will continue through 2019 with more than half expecting vacancies in excess of 14 percent.
High rents will persist and even remain at record levels in 15 markets through 2018, partly due to availabilities being concentrated in high-end spaces.
Sydney is expected to post the lowest vacancies and highest rent growth among core markets, while Hyderabad and Bengaluru will boast the highest rent growth and lowest vacancies among emerging markets, respectively.
And overall cross-border investments in the region are set for an impressive finish, with volume in the first five months of 2017 at record highs and with conditions for a banner year expected to remain conducive.
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