Current Commercial Real Estate Trends in Asia Pacific: What You Need To Know (Asia Serviced Offices)

In 2016, the demand for occupiers and investors across the Asia Pacific region is increasing, following on from an improvement in the balance between the two in 2015. 

Additionally, the increase in real estate transactions that is already prevalent in 2016 is likely to continue due to strong demand for investment.

Asia Pacific Summary

The most significant theme of 2016 has been the rise in real estate transactions across the region. This effect is a result of high demand and an increased supply, partly due to the planned developments in Asian cities.

There is increased capital throughout the region that will be utilized by investors who aim to raise their asset allocations in Asia.

Chinese investments continue to make headlines across the region and serve as key sources of outbound capital.

It is expected that the current prospering markets will remain healthy throughout 2017, however investors may be subject to an increase in interest rates in the United States, especially after the presidential elections. 

Australian offshore investments have more than doubled in 2015.  It is expected this growth will continue in 2017. However  the types of investors will be different from the previous cycle in 2007 when it was dominated by Australian institutions. In the current cycle, these institutions are increasingly being funded by offshore groups.

Financial Markets

Capital markets are recovering and investors are confidently investing in real estate due to sustained economic growth across Asia Pacific.

Risk of liquidity is lower due to cooling measures being relaxed across the region as the year progresses and further supply reaches the market.

Industrial Markets and Logistics

In view of a robust e-commerce industry ,the logistics real estate market is showing positive growth, as is the opportunity for industrial real estate in Asia Pacific in 2016.

Demand for warehouse space is on the rise, resulting in good prospects for industrial investors.

Aside from market development, the property industry may also be affected across all sectors by structural variation and technology, which may cause changes to logistical efficiency and online retailing.

Office Locations

As the global economy recovers, the demand for office real estate in Asia Pacific is rising. These trends may be indicative that the office market will continue to thrive as the economy further improves.

Retail Properties

Due to the bad economic sentiment and popularity of e commerce  especially amongst the younger generation,, retail sales have slowed over recent years.

Most malls remain empty or not up to optimum occupancy.

Asia Serviced Offices provides Flexible office spaces in locations across the Asia Pacific region, including Singapore, Malaysia and China.

If the trends in commercial real estate have encouraged you to consider commercial premises for your own up-and-coming business, you may wish to review the benefits of leasing a serviced office by visiting