{"id":38741,"date":"2016-12-21T14:01:13","date_gmt":"2016-12-21T07:01:13","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/5-trends-that-could-affect-asia-pacific-real-estate-in-2017\/"},"modified":"2016-12-21T14:02:54","modified_gmt":"2016-12-21T07:02:54","slug":"5-trends-that-could-affect-asia-pacific-real-estate-in-2017","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/5-trends-that-could-affect-asia-pacific-real-estate-in-2017\/","title":{"rendered":"5 trends that could affect Asia-Pacific real estate in 2017"},"content":{"rendered":"


\nWhat to expect after the Year of the Unexpected
\nHong Kong skyline. Banana Republic images\/Shutterstock
\nAlthough 2016 has been a\u00a0year of global uncertainty, marked by a spring of nationalist-populist and far-right ideologies dawning on both sides of the Atlantic, real estate markets in Asia-Pacific remained relatively robust.
\nInvestors around the region are still, and will still, allocate capital to real estate.
\n\u201cThere has been a lot of capital around in 2016, with new investors attracted to Asia whether they are large sovereign funds, pension funds or Chinese insurance companies,\u201d said Stuart Crow, JLL\u2019s Head of Asia Pacific Capital Markets.
\n\u201cThe outperformance of capital values compared with rents has pushed core yields to new lows in many markets across Asia Pacific,\u201d said Dr Megan Walters, Head of Research, JLL, Asia Pacific. \u201cBut the overall commercial real estate investment market should remain stable in 2017, as we expect continued institutional appetite for real estate in the region but an ongoing shortage of stock.\u201d
\nWhat\u2019s next for Asian and Pacific markets? Jones Lang LaSalle does some mirror-gazing:
\n1. Vietnam will be the country to watch for in ASEAN
\nSoutheast Asia will be the one to watch for 2017, according to JLL. Vietnam will be particularly sought after, due to vigorous economic growth and greater market transparency. Its real estate sector saw a 12 percent year-on-year increase in investment this year, for one.
\nHowever, investors are expected to fall back on Australia, for its transparency and higher yields, and Singapore, for its attractive entry points.
\n2. You can\u2019t hold back Chinese capital outflows
\nThe Beijing government is set to clamp down on overseas investments of more than USD10 billion and M&As worth more than USD1 billion. These curbs notwithstanding, there will be no limiting the extravagant amount of capital outflows gushing out of mainland China.
\n\u201cThe trend of Chinese capital going out for real estate is not stopping,\u201d said Crow. \u201cIf anything, it is going to gather momentum due to the enormous capital base in China.\u201d
\nMost investors in China will still see overseas investment as a \u201cstrategic move,\u201d he said. In fact, China is now the world\u2019s largest cross-border real estate investor, having invested nearly USD18 billion into commercial property assets internationally in the first three quarters of this year.
\nRead next: 5 strongest real estate markets in Asia-Pacific \u2014 number one might surprise you
\n3. New sectors, opportunities
\nInvestors will be on the prowl for value in 2017, said Walters. \u201cFinding value is challenging. As a result, investors will increasingly look for value in off-market deals, newer and secondary cities as well as newer sectors.\u201d
\nAs more and more consumers decide to live in compact homes, the need for self-storage facilities will become ever more pressing.
\nOther opportune areas to watch for in 2017 include the logistics sector, due to the rise of e-commerce, and data centres, due to higher take-up of cloud computing and big data.
\n4. More and bigger deals to continue
\n2016 was the year of record-smashing commercial deals, such as Qatar Investment Authority\u2019s purchase of Asia Square Tower 1 in Singapore, China Life\u2019s purchase of the Century Link complex in Shanghai, and Brookfield Asset Management\u2019s acquisition of International Finance Centre Seoul.
\n\u201cThere is every indication that this trend for big ticket deals will continue into 2017,\u201d Crow said. \u201cThe prospect of most central banks keeping interest rates low for an extended period means capital continues to be deployed into real estate investment. This will help buoy corporate occupational demand and rent performance. Yields in core asset classes will remain stable because of investor demand.\u201d
\n5. The Trump effect
\nGlobal uncertainty from the new US administration may lead to stock market and currency volatility, as well as political risk due to geopolitical tensions. \u201cThis may drive the world\u2019s largest investors to increase their allocations to the asset class because of real estate\u2019s safe haven nature and diversification benefits plus relatively higher returns,\u201d Walters said.
\nRead next: 5 ways a Trump presidency could impact Asia
\n
\nSource : property-report.com
\nRead more…5 trends that could affect Asia-Pacific real estate in 2017<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

What to expect after the Year of the Unexpected Hong Kong skyline. Banana Republic images\/Shutterstock...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-38741","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-a4R","jetpack-related-posts":[{"id":118297,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/investors-are-piling-into-chinas-offices-shops-and-retail-space-defying-spending-slumps-across-asia-pacific-real-estate-markets\/","url_meta":{"origin":38741,"position":0},"title":"Investors are piling into China\u2019s offices, shops and retail space, defying spending slumps across Asia-Pacific real estate markets","date":"August 20, 2020","format":false,"excerpt":"\r Property buyers piled into China\u2019s commercial and retail real estate in the three months ended June even as the country was barely out of its coronavirus outbreak, outpacing demand across the rest of the Asia-Pacific region, according to a report.\r\rSecond-quarter investment volume jumped 95 per cent to US$8.4 billion\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":48910,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/jll-named-top-dealmaker-in-asia-pacific\/","url_meta":{"origin":38741,"position":1},"title":"JLL named top dealmaker in Asia Pacific","date":"March 21, 2017","format":false,"excerpt":"\r JLL handled US$20.4 billion worth of investment deals in 2016, the highest in the region. 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Asia-Pacific was set to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":132582,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/asia-pacific-commercial-property-attracts-strong-interest-from-us-investors\/","url_meta":{"origin":38741,"position":5},"title":"Asia-Pacific commercial property attracts strong interest from US investors","date":"March 27, 2019","format":false,"excerpt":"\r South China Morning Post revealed that according to New York-based data provider Real Capital Analytics, US investors are the biggest spenders on commercial property in Asia-Pacific in the first quarter of 2019. 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