Asia Pacific Market Outlook 2015
• Supportive fundamentals: Corporate and investor confidence in Asia Pacific remains intact and is supporting firm demand from both real estate occupiers and investors. CBRE expects rental and capital value growth of around 2 – 4% for the office, retail and industrial sectors in 2015 and a 5% increase in real estate investment volume.
• Office: Cost control continues to influence corporate decision-making and is resulting in cautious expansion across the region. The focus on long term portfolio strategy and workplace improvement will result in an increased willingness on the part of multinationals and some domestic companies to consider opportunistic upgrades and activity-based workplaces.
• Retail: Increasing competition among retailers and rising operational costs will see retailers focus on leasing prime space in key growth markets in 2015. Landlords with a good operational track record; willingness to embrace “retail-tainment”; and ability to proactively collaborate with tenants will benefit from stronger retailer retention and consumer engagement.
• Industrial: Demand for logistics warehousing space will remain strong in most markets, driven by the development of organised retail in emerging markets; strong growth of e-commerce and expansion by third-party logistics providers (3PLs).
• Investment: Improvement in fund raising environment and sustained low interest rate will continue to support investment activity. Under the slow growth, low yield environment, the main investment opportunities in 2015 will be tied to the medium to long term structural changes in the region as opposed to cyclical investment prospects.