According to a recent report by Cushman & Wakefield, trends in three key demographic groups will have a significant impact on global real estate markets in the coming decade.
Chinese companies have poured nearly $11 billion into overseas ports during the past decade, gaining access to strategic maritime hubs as part of its Belt and Road initiative, an aggressive investment campaign that has raised concerns about Beijing’s growing clout across the world.
Singapore’s highly permeable pro-business market (ranked most competitive globally by the world Economic Forum) is often regarded as the bellwether of the global economy.
Hong Kong’s long-term investment prospects remain good amidst the social unrest.
Malaysia’s ongoing political drama has received much attention, casting the nation in a negative light. Investors should be aware of two broad government initiatives that may boost demand and create opportunities in Malaysia’s commercial real estate market.
In a bid to tighten the spare capacity in the labour market and support the long-term inflation target, the Reserve Bank of Australia cut the official cash rate by another 25 basis points to a historical low of 1% in July.
The protracted monetary easing cycle forged by central banks around the world to rejuvenate economic activity has greatly boosted investment interest in commercial real estate, particularly in the office sector.
In our view, 5G will profoundly impact China’s real estate market, lifting demand for industrial real estate, offices, and data centres. Retail is also likely to gain, although 5G’s impacts will take time to be felt.