Hong Kong Wen Wei Po (Reporter Li Zitian) The raging new crown pneumonia epidemic has caused investors to take a wait-and-see attitude towards uncertain market conditions. Jones Lang LaSalle issued a report yesterday stating that the real estate transactions in the Asia-Pacific region are expected to rebound in the first half of next year, especially in Japan, Australia, and Australia. South Korea and China will have more significant growth. Although the market is full of uncertainties, 78% of overseas investors surveyed plan to maintain their investment scale in the Hong Kong property market, while only 18% of respondents plan to reduce related investments.
Huang Zhihui, head of the Greater China Research Department of Jones Lang LaSalle, said that the rental income and return on capital of Hong Kong properties in the next 12 to 24 months will be lower than in the past, coupled with the weak local economy and social events and other factors, all affect investment sentiment. Nevertheless, nearly 80% of foreign institutional investors plan to maintain their investment scale in the Hong Kong property market, reflecting their long-term outlook on the market outlook and the past.
Long-term outlook remains largely unchanged
He continued that the recent transactions recorded in the Hong Kong property market reflect that local and mainland investors or developers still have a strong desire to invest in Hong Kong, especially high-quality properties, and it is expected that real estate and data centers with strategic locations will remain their main focus. aims.
84% expects Asia Pacific to rebound in the second half of the year
In addition, about 84% of respondents expect that the Asia-Pacific region's turnover will rebound in the second half of this year. In-depth analysis of data shows that 32% and 52% of respondents expect the property market to recover in the second half of this year or the first half of next year, respectively. However, unpredictable market conditions are still the biggest challenge for capital deployment this quarter. About 60% of investors believe that uncertain factors will lead to suspension of trading, including assumptions before buying properties, rental assumptions, vacancy rate forecasts, capital costs and prices Unclear etc.
Optimistic about the increase in trade in China, Japan, South Korea and Australia
Although many votesInvestors expect the property market to recover in the next 6 to 12 months, but they believe that next year, markets such as Japan, South Korea, China and Australia will have the greatest opportunity to increase property transactions. Real CapitalAnalytics data shows that the total real estate turnover in the Asia-Pacific region in the first half of this year was US$52.9 billion, a decrease of US$40.3 billion from the same period in 2019.
Stuart Crow, Chief Executive Officer of Capital Markets for Jones Lang LaSalle Asia Pacific, said that Japan and South Korea are the preferred locations for customers, and residential buildings, retail necessities and logistics centers are all preferred property types. Under the epidemic situation, as trading increases and investment value gradually emerges, investors are expected to increase the risk factor.
In addition, the bank also pointed out that although core properties (rent-collecting investments) are still the focus of the strategy, the opportunities to obtain core assets are limited. In addition, to rebalance relative risks and volatility, investors also plan to focus on Non-property investments (growth and rent collection investments) increased by 42%, while investments in value-added parts (growth investments) increased by 49%.