Asia Pacific regional property-sector outlook
As with the rest of the world, economic growth in the Asia Pacific region continues to slow, with economies reliant on domestic demand while awaiting fiscal stimulus measures to take hold, according to the latest Real Estate Outlook from UBS Asset Management Real Estate and Private Markets.
But while real estate markets in the region are showing signs of investor concern, there are positives to maintain their interest. In the Asia Pacific office sector, demand has decreased, but is buoyed by tight vacancies. In addition, industrial sector performance has been boosted by restrictions on land use. And although sales volumes are falling, strong investment interest is likely as yield spreads increase.
Office markets in the Asia Pacific region are seeing caution from investors, and the social unrest in Hong Kong “adds another layer of uncertainty to corporate real estate decision making,” states the report. The city-state has seen