CEBU, Philippines — Global advisory and research firm Colliers International has warned of a possible market slowdown in Asia this year.
However, opportunities remain for occupiers and investors, revealed Colliers latest predictions for Asia released yesterday.
“Slower growth in China and emerging signs of a slowdown in the U.S. cloud the outlook for Asian property. However, interest rates ought to rise more gradually than previously expected, holding funding costs down for developers and investors,” said Andrew Haskins, executive director for Executive of Research in Asia for Colliers.
According Haskins, trade disputes remain a key concern, and signs that a slowdown is starting to take hold in the US may weigh on Asia.
More positively, a probable slower pace of interest rate increases than previously expected should help hold down cost of funds for investors and property developers in most Asian markets.
The retail property also is facing doldrums as its faces uncertain towards the rest of the year.
“Besides the threat from e-commerce, we see ample new supply of retail space in several cities. Rent growth is mildly positive or mildly negative in Shanghai, Beijing, Singapore and Hong Kong. However, landlords and tenants alike face the long-run challenge of putting experience, entertainment and digital connection at the heart of their retail offering,” Haskins said.
Interestingly, despite Philippines clocking in its slowest GDP growth in three years, office posted record-high demand and supply in 2018 with demand to remain diversified in 2019.
The residential pre-sales, on the other hand likely to decline due to slower project launches but property retail is seen to remain stable as inflation tapers and consumer confidence improves. (FREEMAN)