While Asia-Pacific’s economy has faced some headwinds in 2018, most real estate markets remain dynamic. But trade tensions and economic uncertainty will dampen commercial markets in 2019.
Heading into 2019, cooling measures, rising interest rates and slowing sentiment is likely to weigh on residential markets, while trade tensions could influence decision making for corporates looking at office space. These are findings of Knight Frank's latest Asia-Pacific Forecast 2019.
«Structural changes are also likely to continue as co-working and co-living become more commonplace across Asia-Pacific markets,» Nicholas Holt, Head of Research for Asia-Pacific, said. Knight Frank is an independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 offices across 60 markets.
Events to Watch in 2019
- National elections in Australia, India and Indonesia
- A deadline of 1st March 2019 has been set for the U.S. to reach a deal on trade with China, with new tariffs otherwise being imposed
- The U.K. is expected to leave the EU on 29th March 2019
- The government in Mumbai will begin to implement a developer tax on unsold inventory
- In Hong Kong, stamp duty on residential purchases is likely to remain unchanged but loan-to-value ratios could be relaxed
Trends to Monitor
- Follow the tech – universities, start-up industries and technology parks will be key drivers of future growth in commercial and residential markets
- The sharing economy will continue to bring structural change to real estate markets, as co-working and co-living continues to grow in major metro markets
- In established mature markets, non-traditional real estate investment sectors such as student accommodation, retirement living and build-to-rent will outperform the wider market
- More cities will enter the ultra-prime residential market. Beijing and Shanghai are expected to join the select club of cities where three or more sales above $25 million take place annually
More to follow
