Prime Benchmark

 

July 2016

 
  • The global economy continued to make a slow recovery during 1H/2016 while external demand remained challenging. Maintaining adequate liquidity and a relaxed credit environment were the main themes in many Asian countries. However, political events such as the Brexit vote and the US Presidential election are adding some uncertainty to global economic growth and The Fed is likely to be more wary of hiking rates in the near term. Except for China, which saw a depreciation trend, most Asian currencies appreciated against the US Dollar by between 0.1% and 14.7% over the first half of 2016.
  • In terms of local currency, prime office rental markets recorded movements from -6.2% to 6.6% across the cities we monitor. Because of a lack of prime offices in Hong Kong and the growing office market in Shenzhen, prime buildings in these markets saw relatively high rates of rental growth.
  • Rents in prime retail malls displayed steady growth, growing by between 0% and 19% in most cities. It is notable that the prime retail rental markets in Melbourne, Hanoi, Sydney and Osaka recorded the highest growth rates in the region. Cities in China and Hong Kong meanwhile seem to be near the peak of the cycle.
  • Luxury apartment rents remained stable in most Asian cities, with the exception of Shenzhen which continued to see stronger rental demand. The rental townhouse market in Beijing is experiencing an apparent correction. Solid rental growth in the luxury serviced apartment sector was also noted in Seoul, Ho Chi Minh City and Shenzhen.
  • In the hotel sector, Osaka has recorded high growth in room rates, followed by Manila, Tokyo and Shenzhen.
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

kamaco Two Exchange Square

+852 2842 4573

 

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