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30 DEC 2022

RICS Asia-Pacific commercial property sector insights Q2 2022

The Asia-Pacific (APAC) commercial real estate sector insights report covers China, Hong Kong, India, Oceania and Southeast Asia.

This report uses the findings of the RICS Global Commercial Real Estate Monitor Q2 2022 and APAC Leaders’ Forums to paint a picture of emerging challenges and opportunities in the sector. Feedback from RICS members throughout APAC strikes a circumspect tone when focusing on the aggregated numbers. This is reflected in the headline RICS Commercial Property Sentiment Index for the region edging slightly higher than for the first three months of the year.

Industry leaders told us that there was a mixed picture in the second quarter of 2022. While the overall sentiment was positive but subdued, there are clear regional and sectoral pockets of growth. The Commercial Property Sentiment Index in China, Hong Kong, India and Southeast Asia showed a modest upward trend, while Oceania was stagnant. Discussions during the Leaders’ Forum led us to believe that the commercial real estate sector across the APAC region is facing an uncertain year ahead. Key factors such as an uncertain workplace market – as organisations consider the changes to facilitate a hybrid approach – and factors such as global tensions, rising interest rates, the ongoing health crisis and hyperinflation will continue to impact the sector over the next year.

Two clear themes emerge at an aggregate level. First, the integration of data and technology will continue to impact the commercial real estate sector in the near future. Secondly, organisations will be considering how ESG and sustainability factors will be quantified and disclosed, which could allow developers and investors to make more informed ESG decisions.