HONG KONG, CHINA--(Marketwired - Jan 14, 2014) - Asia's accelerating economic growth and rising industrial output and retail sales all point to a positive outlook for the region's property markets in 2014, according to Colliers International Asia Real Estate Forecast 2014.
"A striking feature in the market is likely to be a big increase in outbound capital investment by Asian investors," says Simon Lo, Executive Director of Research & Advisory, Asia, at Colliers International. "They will be seeking to exploit the big differences between the property cycles in Asia and the US and Europe in order to achieve better yields and enjoy the strategic benefits of diversification."
Chinese investors are set to lead the way in this trend. They are likely to spend at least twice as much on overseas property assets as last year. Their favourite investment destinations will be gateway cities like London, New York and Chicago.
Key highlights from the report include:
Overall, Asia's office leasing sector will remain steady, with rents increasing by an average of around 3% in 2014. Jakarta and Manila are expected to remain the hot spots, which are projected to see rental growth of 13% and 9%, respectively, in 2014. The region's two key laggards are expected to be Hong Kong and India.
The rents of industrial and logistics premises will grow by an average of about 3% across Asia, as more small and medium-sized companies outsource logistics operations to third-party logistics operators. Industrial and logistics rents in Manila are expected to remain the fastest growing in Asia, although by a more-modest 21% this year.
Colliers forecasts retail rents will grow by an average of about 3% across Asia in 2014, with retailers increasing their emphasis on decentralised locations. While retail rents in Guangzhou, Hong Kong and Ho Chi Minh City, those in Hanoi and Singapore are likely to remain static.
Office yields in most Asian cities are projected to edge up by a further 10 to 30 basis points in 2014. However, Shanghai, Guangzhou and Tokyo will be the exceptions where yield compressions are foreseen for their office.
About Colliers International
Colliers International is a global leader in commercial real estate services, with over 13,500 professionals operating out of more than 482 offices in 62 countries.