This week we released our Q1 2019 APAC All Sector MarketBeats, our cornerstone report series covering 26 cities across Asia Pacific. Through the reports you’ll find investment data covering office, retail, industrial, and residential sectors across categories including leasing, new supply, vacancy rates. These reports are an essential asset as you plan your future real estate investment strategy, you can find them on our dedicated portal here.
Highlights from Q1 across Asia Pacific include:
Retail Sales on the Rise in Singapore
Singapore retail sales ended on a positive note, with retail sales higher by 0.5% y-o-y for the whole of 2018. Firm economic growth and a tight labour market have driven consumer confidence leading to higher spending. Growth was fueled by the medical goods & toiletries (+5.0%), furniture & household equipment (+3.4%), watches & jewellery (+2.0%) and wearing apparel & footwear (+2.0%) sectors.
Demand for Land Continues Unabated in Melbourne
Demand for Melbourne industrial land remains unsatisfied. Land prices have continued to rise for all sizes and locations, notably among >10,000 sqm lots where prices have increased 35% year-on-year. Put simply, Melbourne currently has 21,000ha of industrial land and some 7,000ha in reserve. The current land services circa 5 million people – there is clearly not enough in reserve to service the next 5 million people.
North Bengaluru is Proving to be a New Residential Hotspot
Large scale commercial developments, upcoming metro corridor and affordable ticket sizes have been driving residential growth in recent times in the North Bengaluru residential corridor. Nearly 16,000 units were launched in Northern Bengaluru during 2018, which was higher than three previous years (2015-17) combined. Unit launches in Q1 2019 are already at 3000+ units and more projects are underway for the rest of 2019. Major players such as Godrej Properties, Purvankara, Bren Group, Sobha and Brigade Group have all launched projects over the last 6 months. Capital values have already increased by 10-15% over the last 12 months and we expect it to trend higher going forward due to higher demand.
Coworking is Booming in Bangkok
Demand for office space in Bangkok remained robust with sustained rent growth and low vacancy rates. Shared workplaces have continued to gain popularity in the city with coworking spaces in office buildings estimated to have expanded by 51% in 2018 to approximately 979,000 sf. Coworking operators is expected to expand their footprint by at least a further 303,000 sf or about 30% by the end of this year.
Interested in exploring the key investment data from other markets across the region? Visit our portal for full access to Q1 2019 Asia Pacific MarketBeats, as well as reports from all four quarters of 2018.