Global real estate services firm Cushman & Wakefield’s 2012 forecast for office market in the region remains positive – stable yet slow against a backdrop of a weakening global economy. Whilst the region’s economy remains a catalyst of leasing activity, sustained global tension could undermine confidence, moderating demand for commercial properties.
Sigrid Zialcita, Managing Director for Research in Asia Pacific, commented: “The overall scenario is of slower growth, but we do not forsee a recession. The region is expecting an overall GDP growth of 4-5% as opposed to the U.S. and EMEA where growth has been lowered to 1-2%.”
However, Asia Pacific is not immune from all global economic downdraft as exports to and capital flows from the U.S and Europe remains critical growth drivers particularly for small open economies. The region as a whole has evolved to be more resilient because of several factors, including healthy domestic demand that foster intra-regional linkage, minimal exposure to European debt and various local government initiatives that were taken.
On the investment front, most markets will continue to present significant opportunities, as growing economic clout, still-sturdy property market fundamentals and the abundance of capital will continue to position Asia Pacific favourably. Overall, Asia Pacific will carry on as a buoyant market and is expected to successfully weather a challenging global economy through 2012.