Asia Pacific highlights

Japan’s macro economy remains strong. Office rental growth has been robust in the face of heavy supply, and pre-leasing for large new projects is proceeding much better than originally expected. PM Abe’s victory in an October snap election is supporting current market momentum.

In Singapore, the enthusiasm of developers to replenish their residential land banks and the continued hunger for large investible grade commercial assets drove investment sales numbers towards levels not seen since 2013.

Even at historically rich valuations, Hong Kong’s office market is extremely active while investors in the retail market are waiting for clearer signs of a turnaround before committing.

Investment activity in Korea continues to thrive despite the geopolitical headwinds and the economy grew at its fastest rate in more than seven years in the third quarter, which could be a factor in the central bank deciding to raise interest rates soon.

In China, developers and investors are exploring multifamily development opportunities as the government changes tack on the residential affordability issue.

Vietnam

In Q3/2017, Vietnam continued to see strong interest from developers for large scale mixed-use projects with a residential component in major cities. In September, VinaLand Limited, the real estate investment fund by Vietnam-based asset manager VinaCapital, transferred their stake in VinaSquare, a mixed use 3.1-hectare development site, in a prime District 5 location in Ho Chi Minh City, which they had acquired around a decade ago, to Tri Duc Real Estate for a total consideration of US$41.2 million. In addition, their 182-hectare My Gia Project, one of the largest township projects in Nha Trang, Central Vietnam, also changed hands for over US$11 million from VinaLand to a local developer.

For more information, click 16112017 – Savills announces Asia Pacific Investment Quarterly Q3 2017- … and 16112017 – Savills công bố tình hình thị trường đầu tư châu Á TBD Q3 201…


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