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.

14 14
Hong Kong Residential 2H 2017

 

Several critical factors continue to propel Hong Kong’s residential market forwards including negative real interest rates, a buoyant Hang Seng Index, limited availability of stock and ample liquidity alongside attractive mortgage packages offered by banks. Volumes in the luxury (1,000 sq ft plus) bracket have picked up over the past quarter in both Hong Kong Island and Kowloon partly due to new project launches but equally to an active secondary market. Across the market as a whole, however, volumes are being supported by primary launches of units below 430 sq ft (Class A) in the New Territories, usually financed by the developer. Such recent launches of Class A units have included Eden Manor in Fanling (624 Class A units from HK$15,543 to HK$19,013 per sq ft), Eight Regency in Tuen Mun (221 Class A units from HK$15,968 to HK$17,103 per sq ft) and COO Residence in Tuen Mun (204 Class A units from HK$14,537 to HK$19,940 per sq ft).

 
 
14 14
Beijing Retail 2H 2017

 

Retail sales in Beijing continued to increase, up by 5.6% year-on-year (YoY) to RMB525.7 billion in the first half of 2017. Online retail sales also continued to record strong growth momentum, registering a 15.4% YoY increase to RMB94.9 billion, and accounting for 18.1% of total retail sales during the same period.

 
 
14 14
Chengdu Residential 2H 2017

 

Chengdu, the capital of Sichuan province, is China’s western economic centre. Benefitting from central government’s "Go West" policy launched in 2000, the city’s economy expanded greatly despite seeing a slowdown due to the global financial crisis and the Wenchuan Earthquake in 2008. Economic growth recovered thereafter then slowed in response to the nationwide economic slowdown from 2013 to 2015. Chengdu’s GDP increased by 8.2% year-on-year (YoY) to RMB611.1 billion in Q2/2017, 1.3 percentage points (ppts) higher than the national average. Meanwhile fixed asset investment (FAI) increased by 14.8% YoY to RMB480.4 billion. Investment in real estate development showed a moderate increase of 2.2% YoY to RMB135.5 billion.

 
 
14 14
Guangzhou Retail 2H 2017

 

Guangzhou, known as the nation’s commodity trade centre, is home to the largest trade fair in China – "The Canton Fair". The Canton Fair is held twice a year and attracts merchants from around the world. These merchants and wholesalers fill up retail streets across the city, offering an array of goods and specialty items. The festival reflects the Guangzhou retail market’s ongoing significance.

 
 
14 14
Shanghai Residential 2H 2017

 

Shanghai’s, and indeed China’s, residential market has once again defied many market commentators’ expectations over the last two years by recording a staggering 50% growth in pricing. This has brought average pricing to RMB48,000 per sq m by Q2/2017, while some of the most expensive units have traded at more than RMB200,000 per sq m. First-hand average transaction prices are now 360% more expensive than they were ten years ago.

 
 
14 14
Shenzhen Office 2H 2017

 

Shenzhen is the second largest economy in Guangdong Province and the fourth largest in China. It is one of two key mainland cities in Guangdong’s Big Bay Area, which includes nine mainland cities and two Special Administrative Regions: Hong Kong and Macau. Shenzhen was granted China’s first ‘Special Economic Zone’ status in the late 1970s. This status, along with Shenzhen’s strategic location, allowed it to become China’s leading manufacturing hub for the next 30 years. In the past several years, the city’s strategic advantages have shifted to high-tech and modern services industries. 

 
 
14 14
Tianjin Office 2H 2017

 

As one of the economic centres of northern China, Tianjin’s economy has been dominated by the manufacturing sector (secondary industry) for a long time. Steady economic growth has however provided a solid foundation for the recent development of tertiary industry, with its contribution to the economy exceeding 50% for the first time in 2015, signifying a key milestone in the city’s transformation from being a manufacturing-oriented economy to a services-oriented one. The tertiary sector continued to see its contribution to the economy grow in 2016 to 54%.

 
 
14 14
Jakarta Residential 2H 2017

 

Jakarta is Indonesia’s economic powerhouse, priding itself on being the nation’s main commercial, political and business hub. Jakarta follows a similar trajectory to Indonesia’s GDP growth rate and has even historically maintained figures higher than Indonesia. Its annual GDP growth rate for the second quarter of 2017 sat at 5.96%, outperforming Indonesia’s result of 5.01%. Such performance is due in large part to the city’s improved household consumption in light of an overall optimism in an accelerating economy. In fact, Jakarta’s consumer sentiment index for the second quarter of 2017 reached 116.97, a positive improvement from the first quarter result of 100.84.

 
 
14 14
Tokyo Office 2H 2017

 

Large-scale Grade B office metrics in the central five wards (C5W)2 have been improving as Tokyo office market fundamentals remain sound. Grade A office vacancy has remained tight and some demand appears to have spilled over to Grade B offices. Grade A vacancy in Shinjuku and Shibuya is particularly tight, and rental growth for Grade B offices in these wards has outpaced growth in other wards.

 
 
14 14
Seoul Retail 2H 2017

 

Based on the Korea Appraisal Board (KAB) data in June 2017, 1/F rents in the top five retail areas for mid-size buildings have shown a divergent performance. Retail rents in Myeongdong and Gangnamdaero recorded steady growth from 2014 to mid 2016, but have recorded slight downward movement since 2016. Meanwhile retail rents for Hongdae-Hapjung increased due to new recreational facilities and improved infrastructure.

 
 
 

Key contacts

Simon Smith

Simon Smith

Senior Director
Research & Consultancy

Savills Two Exchange Square, 23/F

+852 2842 4573

 

Subscribe to Savills research

 

Would you like to be notified via email about new research?