Anne Breen
Global asset manager, Standard Life Investments (SLI) expects Sydney and Melbourne office space to be the top performers in Asia Pacific commercial real estate in 2017.
In SLI’s Q1 Real Estate Update, Anne Breen, Head of Real Estate Research and Strategy said she expected another year of healthy economic growth in Asia pacific in 2017 “and another year of attractive returns for Asia Pacific real estate”.
However, she warned there would be losers as well as winners in the region this year.
“The top performers should be Sydney and Melbourne offices given a resilient Australian economy, while dominant prime regional shopping centres should also perform well. The Tokyo office market is peaking and we expect healthy, but lower returns in 2017 as the new supply-line grows.
“Perth offices, Hong Kong office and retail, Singapore office and retail and some mainland China office markets are expected to underperform given high and growing supply, and weakening demand,” she said.
Other SLI Q1 Real Estate Update highlights include:
- 2017 is likely to be another subdued year for the UK real estate market.
- The European real estate cycle is entering a mature phase and the strongest market returns have passed.
- Shifting US policies will affect commercial real estate demand across North America, and there is likely to be increased demand for office and industrial space as companies choose to grow their workforces domestically.