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RICS Global Commercial Property Survey Q3 2012
HONG KONG, Nov. 7, 2012 /PRNewswire/ --
Asian markets are in general performed well with signs of positive trends, particularly with more positive sentiment found in Hong Kong and Mainland China, says RICS Global Commercial Property Survey Q3 2012, published last week. The latest results of the RICS Global Commercial Property Survey highlight the growing divergence between the struggling Eurozone economies - which recorded some of the weakest readings in the survey - and the real estate markets in parts of Asia and North America where respondents are more optimistic.
Sentiment towards occupier demand and investment market is rising in the majority of countries across Asia with a sharp turn of growth in enquiries and activities. The markets in Hong Kong and Mainland China continue to outperform their Asian counterparts in Singapore and Malaysia. Confidence in the outlook for tenant demand and rent in both Mainland China and Hong Kong is strong particularly in the office and retail sector, with rental expectations rising from +25 to +28 and +21 to +25, respectively.
More upbeat sentiment appears towards the market in Hong Kong than Mainland China. Occupier demand in Mainland China is not as strong as the previous quarter but rising at a more modest rate, with a reading of +17. On the other hand, demand for business property in Hong Kong continued to rise, from +21 to +25, in spite of a slowing economy. However, due to the negative impact of increased global uncertainties and weakening external demand on the economy, rental values are expected to go down. Nevertheless, with supply relatively stable, the outlook for the rental market in Hong Kong remains positive.
In Singapore, the occupier market saw demand from tenants fall in Q3, but at a slower pace. Increased levels of available space have led to downward pressure in relation to expectations associated with rental values In spite of the currently challenging economic climate a notable shift of sentiment in the investment market has emerged, with enquiries maintaining positive momentum. Additionally, sentiment regarding future transactions returned to positive territory. Accordingly, capital values are expected to rise.
Since the last quarter, the outlook in Malaysia has improved with occupier demand edging into positive territory nevertheless the rental value expectations remain negative. Sentiment rebounded on the investment side for the first time since early 2011, with the net balance of investor's enquiries moving from -6 to +13; therefore, capital expectation stabilised.
Commenting on the Q3 survey results, Chris Brooke, RICS Asia Chairman, said:
"In Mainland China, notwithstanding the continued restrictive policy environment associated with the residential sector, sentiment regarding occupier demand in the commercial market continues to be positive, although less positive than was seen in Q2. There is a general view amongst survey respondents that office and retail rents will continue to increase during Q4. However, in Hong Kong both occupier demand and the investment market are expected to be relatively stable in the short term, with a more cautious attitude being adopted by investors after the housing policy measures announced by the Hong Kong government last week."
Notes to Editors:
Net Balances: Net balance percents, or scores, are calculated by subtracting the numbers of respondents reporting "down" from the number who reported "up".
Sample: The results of the Q3 GPS survey have been compiled from 942 responses
About the Survey: Available at www.rics.org/economics, the RICS Global Commercial Property Survey is a quarterly guide to developing trends in the commercial property investment and occupier market.
About RICS & RICS Asia
RICS is the world's leading qualification when it comes to professional standards in land, property and construction.
In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.
Over 100,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.
RICS is an independent professional body originally established in the UK by Royal Charter. Since 1868, RICS has been committed to setting and upholding the highest standards of excellence and integrity - providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org.
