The Knight Frank Asia Pacific April bulletin summarises local sentiment and government activity on-the-ground across the major markets in the region.
Office:
· Many corporate occupiers now postponing leasing deals across Asia-Pacific. 11 of 15 office markets tracked registered a drop in leasing activity. Despite the rate of Covid-19’s spread now slowing in pace, most landlords across the region have opted to wait and see and are yet to reduce their asking rents. Mainland China has seen an uptick in leasing activity, while Taipei’s office market is still tilted in favour of landlords.
Industrial:
· Greater China has started to witness a stabilisation of leasing activity as their lockdown eased. E-commerce related logistics facilities are in demand in a number of markets. However, the situation seems to have improved month-to-date in April as we witnessed several markets reporting leasing activity; mainly in the Greater China markets in tandem with their lockdowns being ease.
Capital Market:
· In Q1 2020, Asia Pacific commercial transaction volumes fell 51% YoY to US$21.6 billion. Only 4 markets are expecting yields to soften in short term with low interest rates supportive.
Residential Market:
· The Asia-Pacific residential market has been severely disrupted over the past month with lockdowns and aggressive social distancing rules significantly hindering market activity. Challenges in viewing are also impacting secondary markets. Greater China markets which have witnessed a recovery in transaction volumes from their February and early March lows.