A great number of positive signals regarding economic development indicate a promising year ahead. While concerns remain over the stability of future credit growth, Vietnam is expected to further develop its economy in 2018 with strong inflow of foreign investment. Commercial leasing activities will continue to be active, with rental growth and occupancy levels expected to witness sustained improvements across all property types.
America’s Cup regattas have significant impacts on host city economies. The 2003 Auckland event generated a net expenditure of $523 million, and estimates range between $403 and $892 million for Cup related expenditure being generated by the 2021 event with an economic impact of up to $977 million possible.
With continued low growth anticipated, the better-than-expected domestic economic performance in 2017, combined with the gradual global economic recovery is expected to provide a solid base for steady economic growth in 2018.
The co-working sector saw rapid growth in Greater China in 2017, expanding its footprint by around 70-80% in Hong Kong anad other major cities, although Taiwan lagged behind. In addition to strong demand from start-ups, co-working centres' ability to offer higher flexibility and lower costs is attracting an increasing number of medium-to-large enterprises utilising co-working space as a new component of their corporate real estate strategy.
Supported by the strong rebound in the manufacturing sector and a synchronised recovery in global economies, Singapore’s annual GDP growth of 3.6% in 2017 surpassed initial estimates. While growth is expected to moderate in 2018, the continued focus on digitisation and transformation of Singapore’s key industries will help pave the way for more sustainable growth in the longer term.
The Australian economy is expected to remain in a low and steady growth phase, but with a different mix of drivers as the residential sector starts to detract from growth, whilst non-mining CAPEX plans look to have improved.
Despite slower macroeconomic growth and steady demand for real estate, the regional business landscape is set to undergo significant change in 2018. Technological innovation will challenge the status quo; new companies and industries will emerge; end-users will be more vocal and opinionated; and the era of yield compression will end.
Arrival of the Tech Age - Is India CRE Ready to Embrace the Change?
APAC Major Report | February 2018
The technological revolution that we see around us is reversing the order of corporate real estate. In knowledge-driven economies of the future, companies’ decisions would be driven by the need for connectivity and accessibility, as well as talent attraction and retention.
The Next Wave of Capital Deployment: New strategies for fund managers
Asia Pacific Major Report | January 2018
Private equity real estate fund raising activity in Asia Pacific has recovered in recent years as investors refocus on the region. US$42 billion of capital was raised by Asia Pacific focused closed-end real estate funds formed between 2014 and Q3 2017, which translates to around US$116 billion (post leverage) of purchasing power.