According to Cushman & Wakefield’s latest Asia Pacific Office Forecast 2018, development activity is projected to continue keeping availability in Kuala Lumpur relatively high this year. With available office stock, the market might hint being tenant favourable for those in Malaysia. On the other hand, Singapore leans towards its landlords' favour.
On that note, the Smart Nation initiative in Singapore will continue to drive the tech sector - allowing the city-state to remain as an attractive gateway to Southeast Asia for tech firms. The report stated: “There are upbeat signs too, in the region’s outsourcing hubs, even as growth in the business process outsourcing (BPO) sector may now be tapering off with the emergence of automation and artificial intelligence (AI) technologies.”
With that said, Singapore's rent is expected to grow at 9-10% in 2018. In fact, rent in Singapore is one of the region's fastest growing among core markets in 2018.
On a whole, the Asia Pacific economy performed better than expected - mostly thanks to improved global demand driving stellar export and manufacturing performance. As the report stated, occupier demand accelerated in many markets - with office absorption levels across the region posting their highest levels in 2017.
Further, blockbuster transactions refused to dry up especially in Hong Kong, which saw the largest ever land and office transactions recorded globally. This year, the region will continue to benefit from the global recovery in terms of increased demand and agenda of reforms.
The study stated: “We expect that same strength to hold in the property markets, with office occupancy and rent growth anticipated to remain at healthy levels even as new supply peaks in 2018.”
“Investment activity should be no different, with transaction volumes expected to edge higher in 2018. We explain below our reasons for optimism,” it added.
Lead Photo / Cushman & Wakefield
Infographics / Cushman & Wakefield