Asian Cities Research

Savills Research & Consultancy aims to offer objective advice to clients in order to help them make well-informed real estate related decisions and realise pre-defined goals.

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Hong Kong Office 1H 2017

 

Hong Kong has firmly established itself as the most expensive office market in Asia and CBD rents are now at an all-time high, after registering 4.2% growth in 2016. On Hong Kong Island, rental growth generally remained in positive territory throughout 2016 driven predominantly by a lack of available stock. Grade A vacancy in the island’s main business districts ended the year just shy of 2%, very low by historical standards.

 
 
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Beijing Retail 1H 2017

 

City-wide retail sales recorded an annual growth of 6.5% in 2016 to RMB1.1 trillion, although 0.8 of a percentage point (ppt) less than the increase in 2015. Online retail sales continued their strong momentum, registering a 20.0% YoY increase and accounting for 18.6% of total retail sales during the same period.

 
 
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Chengdu Retail 1H 2017

 

According to the Chengdu Statistics Bureau, during the 2017 Spring Festival, the city’s overall shopping mall turnover was higher than that seen in department stores. Shopping malls such as International Finance Square, Global Century Plaza and CapitaMall Tianfu saw their operating income increase by more than 10%, an indication that the city’s retail market still has great potential.

 
 
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Shanghai Investment 1H 2017

 

Relaxed monetary policy and limited investment opportunities have brought an influx of capital searching for a safe haven into Shanghai’s real estate market in recent years. High demand for core assets as well as inflated land prices have also contributed to the growth of real estate asset prices further compressing yields.

 
 
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Guangzhou Office 1H 2017

 

Despite the slowdown of the national economy, Guangzhou continued to witness strong economic growth in 2016. According to the Guangzhou Statistics Bureau, the city’s GDP grew by 8.2% year-on-year (YoY) in 2016, to RMB1.96 trillion, 1.5 percentage points (ppts) and 0.7 of a ppt higher than the National GDP growth rate and Guangdong Province GDP growth rate, respectively.

 
 
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Shenzhen Retail 1H 2017

 

After hitting a low point in 2015, the city’s retail sales rebounded totalling RMB551 billion in 2016, up 8.1% year-on-year (YoY).  In Q3/2016, the city experienced a downward trend in housing prices, according to statistics provided by the Urban Planning Land and Resources Commission of Shenzhen Municipality. With households and individuals increasingly restricted from making home purchases or upgrades, it is expected that some of this excess capital will find its way into the local retail market, as potential home buyers with few alternative investment options spend their rising incomes on consumer goods.

 
 
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Tianjin Residential 1H 2017

 

Tianjin has experienced accelerated economic development in recent years, with the city’s GDP growth rate among the highest in the country. While the city’s economy has been affected by the slowdown of the broader Chinese economy since 2011, it continues to outperform the national average. In 2016, Tianjin’s GDP reached RMB1.79 trillion, an annual growth rate of 9.0%. The city’s quickly growing economy has ensured the sustainable and healthy development of the local real estate market. Encouraged by strong economic growth, real estate investment in the city increased to RMB230 billion in 2016, an increase of 22.9% year-on-year (YoY).

 
 
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Tokyo Residential Sales 1H 2017

 

New condo prices in Tokyo have been setting new cyclical highs since 2013. Tokyo Kantei, an appraiser, reported that new units were selling for an average of 28.7x Tokyo’s annual rent in 2016, up 1.4 points from twelve months earlier and 4.9 points from 2012. Low borrowing rates and tax incentives, especially for inheritances, as well as bullish sentiment have enticed more and more buyers into the market. Overseas retail investors have also gotten involved by leveraging the softer yen. First-month contract rates held steady above 70%, and large developers poured new units into the city.

 
 
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Seoul Residential 1H 2017

 

Korea’s population, is 51 million, with 50% living in the Seoul metropolitan area (Seoul, Incheon, and Gyeonggi province ). Due to Korea’s low birth rate, low marriage rate and aging society, the average household size was 2.5 in 2016, shrinking from the 3.7 average in 1990. The proportion of households of only one or two people is 53%, and 40% for households of three or four. As the demographic characteristics have changed, perception and requirements for housing have changed accordingly.

 
 
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Manila Office 1H 2017

 

The Philippines has been resilient despite the changing political tide and slow global growth. In 2016, the economy grew within government expectations at 6.8% placing it ahead of Asia’s fast growing economies such as China and Vietnam. Private consumption continues to largely contribute to economic growth which is still being fuelled by remittances from Overseas Filipino Workers (OFW) and the expanding outsourcing and offshoring (O&O) sector.

 
 
 

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Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Savills Two Exchange Square, 23/F

+852 2842 4573

 

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