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| Edited By: |Source: PR Newswire |Updated: Nov 19, 2013, 11:17 PM IST
HONG KONG, Feb. 6, 2013 /PRNewswire/ -- Asian markets continue to outperform Europe with positive investor sentiment, says RICS( http://www.ricsasia.org ) Global Commercial Property Survey Q4 2012, published last week. The latest results of the survey highlight the broadly positive occupier and investment momentum across Asia, the UAE, North America and Russia along with a declining flow of distressed properties coming onto the market in these areas. In addition, the survey paints an optimistic picture for the next quarter, with majority of Asian markets reporting rising transaction and capital value expectations and expecting investment demand to grow further stronger.
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The China market continues to perform well on both the occupier and investment sides. Strong domestic consumption remains a key support for the former although the new supply coming onto the market suggests the positive momentum in rents may moderate over the coming months. Meanwhile, the investment market continues to be underpinned by a firm trend in new enquiries to purchase property.
Indicators in Hong Kong still remain positive, particularly regarding the prospects for rents and capital values. Significantly, the further cooling measures introduced by the new government on residential property might have diverted investors to commercial property. Tenant demand picked up at a slightly quicker pace in Q4. As a result of rising investment activities, both investment enquiries and capital values edged up at a faster pace.
Meanwhile, there is an increasing evidence to suggest that Japan's commercial property market also seems to be improving with positive indicators on the occupier side. Investment enquiries and future transaction expectations both rose sharply. Nevertheless, the more positive developments in the investment market have yet to fully feed through to confidence in capital values. For the moment, values are expected to remain broadly stable.
Commenting on the Q4 survey results, RICS Senior Economist Andy Wu, said:
"Capital will likely continue flowing into Asia in 2013, driven by the region's stronger growth prospects, global excess liquidity and risk appetite. This should lead to a further pick up in real estate demand in key Asian markets, from occupiers and investors. Specifically, the expected economic recovery and increasing levels of business and consumer confidence in the region will likely result in higher-than-expected investment activity this year.
On the occupier side, Singapore remains a concern. At this point, there is little sign of a reversal in the recent drop in demand for space. This is particular the case for offices. As a result, rents are likely to remain under pressure in the near term."
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.
Media enquiry, please contact:
RICS Asia Public Relations Representative
Mr Andy Hung / Mr Timothy Wong
P: +852 2114 0270
F: +852 3163 2340
M: +852 9254 9250 / +852 6485 3225
E: andy@creativegp.com / timothy@creativegp.com
SOURCE Royal Institution of Chartered Surveyors
