The Asia Pacific Real Estate market is set to witness a robust second half in 2024, fostering diverse investor sentiment across key sectors, including residential, commercial, office, and hospitality properties. The market is expected to remain highly dynamic.
The Guidepoint Insights team has been closely monitoring major APAC markets such as Japan, Tier 1 cities in China, Hong Kong, and Singapore, aiming to provide comprehensive analyses and insights to support informed investment decision-making.
China Tier 1 Cities Residential Market Update
After a quiet Q1, what is the outlook for price, volume, buyer sentiment and financing environment across four Tier 1 cities in China?
Guidepoint Insights had an in-depth discussion with a Research Director from Centaline Property Agency to provide a detailed market update.
Key takeaway:
“It is evident that buyers are carefully considering factors such as product quality, renovation, price, and potential for future appreciation.”
“Currently, policies in first-tier cities are becoming increasingly lenient.”
“Developers need strong sales to secure funding. Ultimately, land sales are critical for developers’ sustainability.”
“If the relaxed policies lead to increased transaction volumes in Shenzhen and Beijing, market confidence will be stimulated, and the momentum is likely to spread to second-tier and third-tier cities.”
“Many cities have increased their focus on affordable housing with the total volume remaining constant but a structural shift towards more affordable housing at the expense of commercialized segments.”
Hong Kong Property Sustainable Recovery?
Partnering with an experienced property expert from Midland Realty, Guidepoint Insights delved into the dynamics of the Hong Kong property market post-government stimulation policies.
The insightful discussion explored factors such as pricing trends, high interest rate environments, developer strategies, and market sentiment to gauge the sustainability of the recent recovery.
Key takeaway:
“After the cancellation of property transaction stamp duties in Hong Kong, prices immediately increased. It’s almost like offering a discount of around 30%, which naturally attracts buyers.”
“Mainland clients face challenges in transferring their funds to Hong Kong, and they also need to liquidate their mainland properties.”
“In essence, many view Hong Kong as a pure asset allocation.”
“A wage-earning class family in Hong Kong would find a 4-million property easier to afford.”
“The main developers are now introducing units of medium to large sizes, typically starting from two-bedroom units.”
Japan Hospitality Market Trends
The Japan hospitality market has hit a new high. ADR level, and the luxury hotel sector is thriving with more high-spending inbound tourists. How does performance vary across different cities? Which subsectors appear to be most promising?
A Managing Partner of AB Capital Investment provided valuable insights into this thriving market.
Key takeaway:
“Tokyo actually recovered best because they benefited from the inbound visitors, and Osaka and Fukuoka followed it.”
“The market does not expect Chinese tourists to come into Japan, but they expect a gradual recovery—but not to the level of pre-COVID-19.”
“How to measure demand and spending? In Japan, there are no such statistics.”
“The supply and demand for luxury hotels is very tight, so actually everybody is positive for the luxury hotel sector.”
Singapore Commercial and Residential Market Trends
Amid an expected overall price fall of 3.9% (Savills), how will the dynamics in the residential, hotel, retail, and office markets come into play? A former group director at PropNext provided a comprehensive market outlook and insights.
Key takeaway:
“The government actually will be launching more public housing flats with a shorter waiting period.”
“By 2024, the hotels market in Singapore is projected to reach revenue of USD 1.28 billion and the market is expected to grow annually at 4.73%.”
“Using IT and technology to service the clients in the hotel industry is what the government is trying to do.”
“There are no changes in terms of the prices in the office market.”
“Many retailers will continue to look for expansion opportunities to build a strong presence in the Southeast Asian market.”
Through ongoing pivotal discussions with renowned industry experts across major markets, Guidepoint Insights will continue to monitor developments in the APAC property market, providing analysis of changes in government policies and their impacts, while staying abreast of the latest market events.
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