 |
RICS Global Commercial Property Survey Q1 2013
HONG KONG, May 2, 2013 /PRNewswire/ -- The Q1 2013 RICS Global Commercial Property Survey indicates that the majority of major Asian real estate markets remain buoyant despite on-going uncertainty over the global economic outlook. This is particularly the case in Mainland China and Japan. Hong Kong, in contrast, has had a flatter first quarter while in Singapore the occupier market is still subdued although investor appetite is picking up.
Tenant demand continues to grow in Hong Kong
In Hong Kong, growth in occupier demand slowed with the net balance shifting from +32 to +6. Rental expectations remain in positive territory with the net balance rising from +29 to +31, and inducement to lease continued to rise. Most significantly, however, the investment market lost some momentum, with enquiries and capital value expectations both falling in Q1 partly due to the implementation of a Double Stamp Duty in February. The net balance for investment enquiries fell from +52 to -10 while the balance for capital value expectation declined from +52 to -14.
Positive outlook in Japan
With the help of extraordinary fiscal stimulus and a bolder monetary policy implemented by the new Japanese administration, the past few months have seen a significant lift in business sentiment. Japan occupier demand net balance rose sharply from +9 to +51. Rental expectations shot up in Q1, with the net balance rising from +14 to +47. Investment enquiries remained strongly positive with a net balance of +78. Ultimately, respondents in Japan have become noticeably more optimistic about Q2, with capital value expectations spiking up.
China market remains upbeat
In China, the tone amongst respondents continues to be upbeat. Occupier demand and rental expectations remain convincingly positive, with the net balance in the case of the former rising from +20 to +43. Development starts, investment enquiries and capital value expectations all continued to rise. Consistent with this firm picture, landlord inducements to tenants have fallen back slightly; the net balance dropped from +22 to -8.
Commercial property market remains more subdued in Singapore
Meanwhile in Singapore, tenant demand continued to decline, but at a slower pace. The negative rental expectations net balance has moderated from -45 to -26. Occupier demand, although still falling, showed a slight improvement over the previous quarter, with the net balance rising from -38 to -7. The investment market remains more positive overall, with the net balance for investment enquiries still positive at +15, and the balance for capital value expectations rising from +17 to +30.
Commenting on the Q4 survey results, RICS Senior Economist Andy Wu, said: "Relatively favourable fundamentals will likely continue to underpin Asia's commercial real estate market in the face of the economic challenges that are still afflicting many advanced economies. In particular, investment appetite for commercial property and transaction volumes look set to rise again this year, reflecting the appeal of many of these faster growing economies."
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 www.rics.org/economics , the RICS Global Commercial Property Survey is a quarterly guide to developing trends in the commercial property investment and occupier market.
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 .
