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HONG KONG, Jan. 30, 2012 /PRNewswire-Asia/ --
The latest RICS Global Commercial Property Survey suggests that the weaker global economic climate in the final three months of last year has adversely affected confidence in the commercial real estate sector. This has been reflected in a downgrading of expectations in an increasing number of countries around the world.
However, in Hong Kong, the picture appears to be more stable as both the tenants and investment markets remained little changed. Demand from tenants and available space both look to be broadly stable. Consequently, the rent expectations appears to have levelled off following 2 years of rise. Capital value expectations for Q1 have also reached a stable level after rising consistently since 2009. However investment activity is projected to slip back a little in the early part of 2012 after recent stong increases.
In mainland China, where policy has become less accommodative and concerns grow over the residential sector, occupier demand in the commercial sphere continues to rise, though the pace has tempered from Q3. The available space net balance remained positive, but fell closer to the neutral reading of zero indicating 'no change'. Unsurprisingly, rental expectations are also set to carry on increasing, but at a lesser rate than previously.
Looking at the local commercial property market, Mr Kenneth Kwan, Chairman of RICS Hong Kong, commented," The net balance reading for both occupier demand and available space point to a broadly stable picture in Q4. Rents are also expected to stabilise going into 2012, with the net balance shifting down. Both investment enquiries and capital value expectations turned marginally negative in Q4 following 18 months of gains. Both are seemingly stabilising at a high level."
Selected Country Highlights
By way of contrast, the outlook for rents is predictably still quite negative across most of Europe with the noticeable exception of Germany. The prospect of an extended period of minimal growth, if not a retreat back into outright recession, is clearly weighing heavily on the sector in the wake of the ongoing turmoil relating to the sovereign debt crisis. Sentiment in the occupier market has also turned a little more negative in both Singapore and India but that follows strong increases in rents through 2010 and the first half of 2011.
Notes to Editors:
Net Balances: Net balance percents, or scores, are calculated by subtracting the numbers of respondents reporting 'down' from the number who reported 'up'.
About the Survey: Available at http://www.ricsasia.org/newsDetail.php?id=486, the RICS Global Commercial Property Survey is a quarterly guide to developing trends in the commercial property investment and occupier market.
Respondents were asked to compare conditions in Q4 2011 to conditions in Q3 2011. Responses for this survey were collected from December 1st until 23rd and amalgamated, at a country level, across the three real estate sub-sectors of offices, retail and industrial property to form a net balance reading for the commercial market as a whole.
About RICS & RICS Asia
RICS is the world's leading qualification when it comes to professional standards in land, property and construction.
In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.
Over 100,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.
RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity – providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.
Media enquiry, please contact:
RICS Asia Public Relations Representative
Media enquiry, please contact:
Mr. Andy Hung / Mr Timothy Wong
Tel: +852-2372-0090
Fax: +852-2372-0490
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