Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}
winning-in-growth-cities-investment-strategy-trends-in-asia-pacific winning-in-growth-cities-investment-strategy-trends-in-asia-pacific-mobile

Winning in Growth Cities: Investment Strategy Trends in Asia Pacific


Risks in the property investment market are clearly up but with the return of lower interest rates, structural changes driving occupier demand and a tight supply of the right space, the market is far from being bereft of opportunities. But where can they best be found?

In our Winning in Growth Cities 2019/2020 report, we examine global commercial real estate investment activity from the past year and predict which will be the winning city markets in 2020.

In Asia Pacific, growth may be set to slow further next year whether looking at consumption or employment figures, but overall will remain attractive on a global basis and more foreign capital is likely to flow towards the region. Occupier markets are mixed, with some seeing increased supply and others slowing demand, but the market offers a wide range of cities as investment options and sector-by-sector there are attractive areas for short- and medium-term returns. These may be in still demand-driven parts of the CBD office market, the largely undersupplied logistics sector, or demographically driven residential markets.

Winning City Markets in Asia Pacific

 Resilient markets in terms of their balance of supply and demand include Tokyo, Osaka, Singapore, Sydney, Melbourne and Beijing, with core locations and strong covenants favoured. For logistics, growth in demand is widespread and land prices are strong as a result, with Singapore, Sydney, Tokyo, Osaka, Shanghai and Beijing well positioned for performance but short of up-and-built stock. In a slowing economy meanwhile, turning to residential opportunities will bear fruit, driven both by demographic changes and increased rental demand due to affordability constraints, with cities such as Tokyo, Osaka, Shanghai, Beijing and Sydney currently leading the way. However, stock is limited and hence development will be the main route into the market.

With China seemingly set for a period of slower growth, much of Asia will feel a chill, but some relative winners are likely among low cost producers such as Vietnam, Malaysia and Pakistan or more advanced tech markets such as Taiwan.

Geopolitical impacts are also likely, favouring Singapore as an independent, reliable base for business in the region or India as a growing powerhouse with supportive fiscal policy, although tensions over Kashmir may have some impact.

China as an Attractive Market

 As a deep market across a range of cities and sectors, mainland China remains an attractive market for investors. While for some, the current market is challenging, with softer demand and restricted availability of debt, long term prospects are good and there are emerging opportunities for well-financed buyers as some vendors seek to restructure their portfolios. There are opportunities in tier 1 and select tier 2 cities for short- to medium- term investors and the winning markets tend be where supply is relatively modest, notably Beijing, and/or where pricing is comparatively attractive, such as Guangzhou and Chengdu.

For mid- to long- term investors, opportunities also lie in cities with extensive infrastructure development and rapid socioeconomic growth but higher levels of supply such as Shanghai and Shenzhen.

Hong Kong meanwhile is another victim of geopolitics with social unrest impacting tourism and services, and likely to affect business and investment decision making if it drags on. Ongoing trends such as catering for affordable rented residential, business decentralization due to high costs and the growth of co-working will however reassert themselves as stability returns.

For more investment insights into growth cities across Asia Pacific, download the Winning in Growth Cities 2019/2020 report here.

Related Insights

main streets across the world 2023

Main Streets Across the World 2023

In this 33rd edition of Main Streets Across the World, we’ll explore the near-term outlook for the retail sector; headline rent and ranking changes for best-in-class urban locations across the world; key indicators and global main street rankings; and key trends to watch such as the cost-of-living crunch, e-commerce and more.
Dominic Brown • 21/11/2023
Reworking the office
Research • Workplace

REWORKING the Office Asia Pacific

Our ‘REWORKING’ series examines decision-making for occupiers under four key considerations: Cost, Carbon, Culture and Community – under which the changing demands, needs and impacts on office spaces and strategies can be examined.
Grant Carter • 03/11/2023
Insights • Economy

Cushman & Wakefield Comments on URA private residential price index Q3 2023

Overall sales volume declined by 3.5% qoq in Q3 2023, reversing the past two consecutive quarters of increase. The fall in overall sales volume was driven by the new sales market, which declined by 8.5% qoq to 1,946 units in Q3 2023.
Xian Yang Wong • 27/10/2023

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All