Cautious sentiment prevails in Asia Pacific
Conditions in the commercial property sector remain challenging across Asia Pacific, according to the second quarter 2016 RICS Global Commercial Property Monitor. India and Japan are the only two markets in Asia Pacific in which both the occupier and investment index readings are in positive territory, according to the Royal Institution of Chartered Surveyors (RICS).
The commercial property market in Australia remains relatively subdued. While occupier demand is broadly stable, availability continues to rise, depressing rental expectations, reports RICS.
The Singapore commercial property market is headed for further decline, with rents predicted to contract in the next 12 months. Sluggish GDP growth and weak performance in the services sector continue to weigh on occupier demand. In response, landlords are increasing incentive packages to lure tenants, though this is expected to have little effect on demand.
Investor demand in Singapore fell for the fou