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Australia and Japan to lead rental growth in 2016

Wednesday 27th January 2016

Australia and Japan will witness a 5% growth in rental rates in 2016, according to the latest Asia Pacific Outlook by M&G Real Estate.
This report has outlined that solid returns are to be expected in the coming year, with rents set to outpace inflation. Office rents are predicted to outperform the retail and logistics sectors. 
Tokyo vacancy rates are also low, falling below 4% for those with floor plans of over 2,000 sq m; indicating future rental growth. 
Australia and Japan’s retail sectors are reaping the benefits of rising domestic spending, with high street stores in Australia performing particularly well. This is encouraging investors to enhance their retail assets. 
Investment activity levels for Asia Pacific remain strong too, and Cuong Nguyen, Head of Asia Pacific Research, M&G Real Estate commented: ““We expect inter-regional investment to continue, with foreign investors attracted by the maturity and liquidity of Asian real estate, as well as the diversification benefits and the breadth of opportunities available.”
“European investors are particularly interested in generating strong, sustainable income streams in Asia’s growing universe of prime real estate and US investors are increasingly considering core opportunities as the risk premium they attach to the region gradually reduces,” he added. 

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Editorial Contact Details - Conor Shilling
0845 672 6000
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