Asian Cities Research

kamaco Research & Consultancy aims to offer objective advice to clients in order to help them make well-informed real estate related decisions and realise pre-defined goals.

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Hong Kong Industrial 1H 2018

 

Residential, retail, even office values regularly grab headlines in local newspapers but not so industrial prices which is surprising, because the sector has proved to be the quiet achiever of the Hong Kong property market over recent years. If luxury residential, prime retail and Grade A office prices have risen by 152%, 82% and 243% respectively since Q4/2008, industrial prices are up by a full 263% and warehouse values by 270%. This stratospheric growth is often overlooked by investors focused on more traditional asset classes in established locations. So what are the reasons behind this outperformance and will it continue?

 
 
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Beijing Office 1H 2018

 

Underpinned by stable economic growth, the Beijing Grade A office market recorded a largely positive performance in 2017. A total of 819,200 sq m of new supply was launched during the year, registering a 12.2% year-on-year (YoY) growth and marking a record high since 2009. Total Grade A office stock increased by 8.3% YoY to 10.7 million sq m by the end of 2017.

 
 
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Shanghai Industrial 1H 2018

 

Shanghai, in addition to being China’s financial centre, is also one of the country’s key industrial centres, and plays a vital role in R&D for heavy industry in the Yangtze River Delta (YRD) and China as a whole. Home to world’s busiest container port, Shanghai also play an important role in the global logistics industry. A dramatic transformation in China’s industrial, logistics and data centre markets over the last five years has seen increasing investment interest in those sectors, leading to cap rate compression and policy changes.

 
 
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Guangzhou Residential

 

Guangzhou continues to attract people from all over China. It offers a modern living standard, high-level resources, abundant job opportunities, and a steady economy. It is not only a first-tier city in China, but also upgraded to "alpha level", being among the top 50 global cities in World Urban System Rankings, released by the Globalization and World Cities Research Network (GaWC) in June 2017.

 
 
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Shenzhen Hospitality

 

Shenzhen is a tier-1 coastal southern city in China adjacent to the Pearl River Delta and directly north of Hong Kong. It has numerous natural tourism areas, which include Dameisha (大梅沙海滨公园) and Xiaomeisha (小梅沙海滨公园) beaches, Mount Wutong, the China Folk Culture Village, Window of the World, Happy Valley, OCT East and Sea World in the southernmost area of the city.

 
 
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Tianjin Residential 1H 2018

 

Responding to government policies, Tianjin has implemented regulations of protecting the environment and cutting overcapacity, shifting from pursuing rapid economic growth to promoting high-quality economic development. Consequently, the city’s GDP has experienced mild growth at its slowest pace in history. In 2017, Tianjin’s GDP reached RMB1.86 trillion, an annual growth rate of 3.6%. Tianjin is on its way to rebalancing its economy to achieve sustainable long-term growth. The local real estate market was accordingly affected by the city’s economic development with the value of real estate investment at RMB223 billion in 2017, slightly down by 2.9% year-on-year (YoY).

 
 
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Macau Residential 1H 2018

 

The Macau Government launched an industry restructuring and multi-development policy in 2015, which pulled the economy back to positive growth in 2017. Macau, with gambling and tourism as its mainstays, suffered from a GDP drop of 21.6% in 2015 due to the sustained downturn in external demand and in the global economy. After experiencing a deep adjustment period in the gaming industry, Macau GDP resumed positive growth in Q3/2016, with a seasonal increase of 5.8% to MOP92 billion. This year's GDP growth rate continued the return to positive and steady gains. GDP for 2017 reached MOP404 billion, a growth rate of 11.7% on a year-on-year (YoY) basis, indicating good economic momentum.

 
 
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Tokyo Residential Sales 1H 2018

 

The mild softness that materialised in late 2016 has not persisted and new condo prices returned to a positive trend and grew throughout 2017. Average first-month contract rates are healthy and still hovering near 70%. New supply has only slightly increased from that of 2016 and developers have sold off temporarily accumulated inventory. This elevated inventory level appears to be having a limited impact on prices. Low mortgage rates are likely still fuelling demand. New, high-profile projects in the Greater Tokyo area are selling well.

 
 
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Seoul Logistics 1H 2018

 

Imports/exports and e-commerce sectors have undergone significant growth, as is the case in most economies. According to the Ministry of Oceans and Fisheries, container freight volumes grew 12% in 2017. Strong export growth from the petrochemical and automobiles industries has driven this increase.

 
 
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Jakarta Retail 1H 2018

 

Jakarta is Indonesia’s economic powerhouse, priding itself as being the nation’s main commercial, political and business hub. Jakarta follows a similar trajectory to Indonesia’s GDP growth rate and historically has maintained figures even higher than Indonesia. Its annual GRDP1 growth rate for FY2017 stood at 6.22%, outperforming Indonesia’s which stood at 5.07%. Infrastructure development and a conducive business and investment climate contributed to the city’s economic growth. Meanwhile, household consumption remained subdued in 2017. Nevertheless, Jakarta’s consumer confidence index in February 2018 improved to 126.7, compared with 124.0 in February 2017.

 
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square, 23/F

+852 2842 4573

 

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