China’s key role in the regional economy means that the latest wave of Omicron and the country’s strict containment measures will have much broader implications. Despite the negative consequences of an economic slowdown in the PRC however, many Asia-Pacific economies are beginning to open up allowing cross border activity to resume and real estate markets to revive.
Simon Smith, AP
China
“China's target of 5.5% economic growth for 2022 seems increasingly unattainable given recent covid outbreaks and the forced closures of major cities. More monetary and fiscal stimulus is to be expected as economic activity slows, but ongoing uncertainty will likely limit short term business investment and expansion.” – James Macdonald, China
Hong Kong
“Travel restrictions and social distancing measures in Hong Kong along with city lockdowns in China has made border reopening with the Mainland highly unlikely in the short term. Economic disruption and slower growth in the PRC will have an impact locally and could potentially impede recovery in the hospitality, retail and office markets.” – Simon Smith, Hong Kong
India
“Supported by improved vaccination rates, the Indian real estate sector has emerged stronger after a third COVID wave. Private equity investment inflows into real estate amounted to US$1.0 billion in Q1/2022, almost five times the quantum recorded in Q4/2022.” – Arvind Nandan, India
Indonesia
“There is a growing sense that the worse is behind us as the residential sector has begun to see pent-up demand generating strong sales, particularly for projects in the Greater Jakarta area”. – Anton Sitorus, Indonesia
Japan
"Japan’s stable market should remain an attractive destination for real estate investment, especially when considering the weakened yen, low interest rates, and ongoing global tensions.” – Tetsuya Kaneko, Japan
Pakistan
“Investment inflows have increased into logistics and warehousing. The start-up industry has also taken off recently, with record funding rounds over the past two years, which has in turn led to increased demand for last mile delivery warehousing. We have also seen growing demand for co working spaces, which is a shift from more traditional office requirements” – Nadine Malik, Pakistan
Malaysia
“Major transaction value in the current quarter rose by 61% QoQ and by 25% YoY, as developers signaled rising confidence with the acquisition of several notable development sites, especially in the Greater KL area.” – Nabeel Hussain, Malaysia
Singapore
“Notwithstanding rising interest rates, real interest rates are still negative, and together with rising global uncertainties the case for investing in Singapore real estate is still very strong.” – Alan Cheong, Singapore
South Korea
“Knowledge Industry Centers are forming distinct markets by region as extensive new supply comes on line.” – JoAnn Hong, South Korea
Taiwan
“The Taiwan Central Bank lifted the benchmark rate by 0.25 ppt for the first time since July 2011. This moderate interest rate rise should not affect most buyers’ confidence, while local insurance companies might look for opportunities in second tier cities which offer higher yields.” – Erin Ting, Taiwan
Thailand
“Thai hotel operators have prepared alternative plans to attract and manage domestic demand as hoteliers try to assess whether tourism can come anywhere close to pre-pandemic levels within 2022.” – Palathip Chunhasomboon, Thailand
Vietnam
“Keen foreign interest and a strong domestic economy auger well for rapid short-term recovery across most asset classes. With the borders now fully open, deals can finally be done. Vietnam is a now a priority for many larger investors, pushing interest and development.” - Troy Griffiths, Vietnam