M&G Real Estate: Asia Pacific Outlook
|
|
- Jeffrey Shepherd
- 6 years ago
- Views:
Transcription
1 December 216 M&G Real Estate: Asia Pacific Outlook Part of the M&G Group
2
3 Executive summary Asia-Pacific economic outlook healthy in near-term, but policy uncertainty globally poses risks. Regional property total returns look set to taper as yield compression slows with lower transaction volumes. Development, alternatives, and tactical opportunities could drive next wave of investments. 25% Ratio to GDP of China s non-financial debt 15%+ Expected rise in Sydney effective office rents in % Average annual APAC property returns expected in next 3 years GDP growth (%) Near-term economic outlook remains healthy The economic outlook for major Asia-Pacific markets remains relatively healthy, with overall regional growth estimates for 217 upgraded slightly to 4.6% in the third quarter. This was led by improved forecasts in Australasia and India, which helped to widen the region s expected outperformance over North America (2.2%) and the euro zone (1.3%). However, with the surprise victory of Donald Trump in the US presidential elections in November, there is now some potential for a stronger US domestic economy at the expense of global trade. Uncertainty over US trade policies could lead to a re-assessment of regional performance but the actual impact could be drawn out, so there are strong grounds to remain optimistic, not least because of growing intraregional trade. Fig 1: APAC still comfortably ahead China looks set to report GDP growth of 6.7% for 216, with a slight increase in commodity demand helping to soothe nagging worries over a possible economic hard landing. Fears of stock market and housing bubbles in China continue to rank among the biggest risks to the Asia-Pacific economy because of the financial system s escalating debt levels. Non-financial debt in China has risen to more than 25% of GDP from 15% in 28 and smaller Chinese banks have extremely high loanto-deposit ratios that put them at risk if non-performing loans increase. Much of China s positive economic outlook, and perhaps the world s, rests on the belief that the Chinese government has the financial strength to support any crisis. In addition to domestic issues, recent political and economic relations between the US and China appear to have worsened and any negative ramifications could potentially affect the global economy. Fears of stock market and housing bubbles in China continue to rank among the biggest risks... In Japan, unprecedented efforts to lift the world s thirdlargest economy out of a 2-year deflationary spiral appear to have hit a wall. Yield Curve Control was unveiled as the central bank s latest policy to boost public confidence and inflation. The policy aims to manage the yield curve by keeping 1-year yields at zero and out of negative territory. US Euro zone APAC F 217F Source: Consensus Economics. Thus far, the loose monetary regime set by Abenomics has supported investment assets well but, as yet, it has not strengthened the real economy significantly, with private capital investment and consumption spending growth 3
4 still slow. The Japanese government s 2% inflation goal remains elusive with consumer sentiment and business conditions still weak. Major retailers are also still choosing to hold or even lower prices to draw out consumers wallets. Elsewhere, economic situations across individual markets continue to diverge. In Australia, Sydney and Melbourne are growing strongly on the back of record-low interest rates and a housing boom. Infrastructure construction and residential redevelopment in the Sydney and Melbourne central business districts is driving real output growth, along with related business and professional services such as legal and real estate, etc. Consumer sentiment has received a huge boost from the ongoing surge in residential prices, up over 3% since 213. The near-term economic outlook for the Asia-Pacific region is likely to remain uncertain following this year s surprise UK vote to leave the European Union as well as the unexpected US election result. A Trump administration could potentially be positive for the domestic US economy but global trade now appears to be more at risk as potential changes to trade agreements could hurt Asian exports. More uncertainty lies ahead in 217 with much of mainland Europe going to the polls and Asian geopolitical tensions on the rise. However, we remain optimistic in the long-run and expect the Asia-Pacific region s consumption outlook with the middle classes expanding rapidly in China, India, and Southeast Asia to continue to underpin economic growth for the foreseeable future. Meanwhile in Brisbane, and particularly Perth, economic conditions remain soft, despite improving commodity prices. Even as commodity demand picks up, incremental investment from this sector appears unlikely. With some firms still facing financial difficulties, bad loan risks are still high, so Australian bank and sovereign credit ratings face potential downgrades. South Korea has also seen a gradual pick-up in growth, driven by low interest rates and the government s fiscal efforts, including the latest KRW1trillion (US$8.5 billion) stimulus package. But doubts remain over the Korean recovery s sustainability, given fluctuating industrial and manufacturing output reports over the course of 216. Labour strike issues and the impeachment of the country s president have further clouded Korea s economic outlook. Two of Asia s key global cities Singapore and Hong Kong continue to face strong headwinds as they struggle through their respective structural problems. Singapore s government GDP guidance fell further to the lower end of the 1-2% official estimate after economic data for the third quarter showed some weakness in the manufacturing and industrial sectors. Recent defaults by oil and gas service companies and persistent weakness in the shipping industry have played a part in keeping consumer sentiment muted. 217 growth forecasts also look soft. The government s drive to attract highervalue manufacturing and technology companies to help offset weakness in the ailing financial sector faces strong competition globally. Slower Chinese growth plus growing competition from mainland Chinese hubs Shanghai and Shenzhen are part of the structural shift that Hong Kong faces. Political uncertainty also appears to be rising again, two years after mass pro-democracy protests erupted. Pro-Beijing and pro-democracy camps are raising the stakes ahead of elections in March for the Special Administrative Region s chief executive. The uncertainty over China s reaction has kept some business decisions on the side lines. 1-year government bond yields (%) Q4 2...we remain optimistic in the long-run and expect the Asia-Pacific region s consumption outlook with the middle classes expanding rapidly in China, India, and Southeast Asia to continue to underpin economic growth for the foreseeable future. Fig 2: Property s relative yield appeal Q4 21 Q4 22 Q4 23 Australia South Korea Source: Bloomberg. Q4 24 Q4 25 Hong Kong US Q4 26 Q4 27 Japan Singapore Divergent markets stock withdrawals and rental rebounds the key drivers Q4 28 By country, the property market outlook remains as divergent as their respective economic stories, with the only common themes being strong Chinese tourism growth and persistently low property yields. In broad terms, the pace of yield compression seems to have tapered off as investors become wary of the demanding valuations and toppish rental cycles. This is perhaps best illustrated by the continued decline in transaction volumes, which have Q4 29 Q4 21 Q4 211 Q4 212 Q4 213 Q4 214 Q4 215 Q
5 been slowing since the second quarter of 215. The decline would have been even more pronounced in the absence of major acquisitions by sovereign, national insurance, and pension funds. As highlighted previously, the combination of population growth, monetary stimulus, and foreign investments has led to a surge in residential prices in Sydney and Melbourne. Positive consumer sentiment, along with continued tourism demand, have been supportive of retail sales and rents, while the redevelopment of the CBD has brought about significant stock withdrawals in the office market. These withdrawals are the key driver of strong rental increases given fairly flat net absorption demand levels. Sydney office rents are expected to rise in excess of 15% in 216, particularly in the secondary office market where most of the withdrawals are taking place. While office rental incentives in Sydney are falling sharply, albeit from a high base, in Melbourne they remain sticky due to the potential pipeline of new supply in the Docklands area. We expect prime Australian real estate to be one of the few developed sectors in Asia-Pacific to still see some yield compression over the next five years. At the other end of the spectrum, Brisbane and Perth continue to see limited occupier demand and negative net absorption. With vacancy rates at multi-year highs and the rental gap with Sydney widening, investors are increasingly looking towards these markets, particularly Brisbane, as potential contrarian investments. We expect prime Australian real estate to be one of the few developed sectors in Asia-Pacific to still see some yield compression over the next five years peak of the cycle with the looming supply pipeline likely to enter the market from On the retail front, inbound Chinese tourist arrival figures continue to rise at a heady pace, though average tourist spend has declined. With visitors spending less on luxury retail, prime retail rents will continue to benefit from Japan s tourism drive but are unlikely to enjoy the huge increases seen in recent years. Logistics-driven industrial demand remains strong, particularly in Tokyo Bay, where vacancy remains low. Outside of the prime industrial areas there is evidence that the rate of absorption has slowed, although vacancy rates remain low. Relatively stable returns in Japan s industrial and residential sectors are also helping to underpin investment interest. Logistics-driven industrial demand remains strong, particularly in Tokyo Bay, where vacancy remains low. The office sector in Seoul continues to see high incentive levels as the supply pipeline comes on-stream. With domestic demand making up the majority of absorption, the uncertainty in the Korean economic outlook is likely to have an impact on expansion plans and rental growth. Similar to Tokyo, the retail sector in Seoul has been a beneficiary of Chinese tourism. Prime retail in Myeongdong district has seen stable rental increases due to its concentration of more-affordable cosmetics and fashion retail shops, instead of luxury boutiques. Fig 4: Growth of Chinese tourists (YOY, %) Fig 3: Residential price index (21=1) F Australia Source: PMA. Japan (Tokyo) Hong Kong Singapore Office rental growth remained strong in Tokyo, driven by low vacancy rates and fairly strong leasing activity. While this growth is likely to continue in the next three years, we expect rent increases to slow from here as we approach the -2-4 Singapore Hong Kong Japan Australia Korea YTD216 Source: Various tourism boards. Hong Kong s traditional gateway-to-china role for international firms could potentially be compromised as Tier-1 cities in China continue to develop rapidly. The incremental demand needed to absorb the large supply pipeline in Kowloon East also seems unlikely to come through, as financial firms downsize. Still, office demand in Hong Kong Central remains resilient as firms continue to 5
6 Office vacancy rates (% stock) value being in Hong Kong s premier office location, despite the significantly lower asking rents across the water in the new business district. The decline in mainland Chinese luxury spending continues to impact retail sales and the sharp correction in prime retail rents, once the highest in the world, is expected to be protracted. In Singapore, pre-leasing for upcoming major office completions has picked up at the expense of asking rents. Older stock within the business district is likely to be impacted the most as landlords continue to see flightto-quality as tenants take advantage of the soft rental market, which could see declines extend into 217. The outlook for prime retail in Singapore remains similarly uninspiring, suffering from lower average tourist spend and competition from convenient, high-quality suburban malls. We expect property yields to see some expansion in both Singapore and Hong Kong over the next five years. Top 3 for rental growth Sydney office Sydney secondary office Melbourne office Source: M&G Real Estate. Perth office Singapore office Hong Kong retail Asia-Pacific real estate is on track to deliver some of the highest total returns globally, averaging almost 11% in 216, supported by continued monetary stimulus and stronger economic expansion. Returns in recent years have been driven by very sharp yield compression, which we believe will now slow. With investors becoming more cautious, we expect returns to taper to more sustainable Fig 2: Mixed picture levels of 8% in 217 and to average 6.5% p.a. over the next three years. With interest rates in the region expected to remain low over this period, these returns will still provide a comfortable spread over bond yields. With investors becoming more cautious, we expect returns to taper to more sustainable levels of 8% in 217 and to average 6.5% p.a. over the next three years. A closer look at some regional markets reveals that high office returns often mask significant incentives, particularly in Australia and Korea. In comparison, we expect the retail sector to provide stronger and less volatile effective returns, ranging from 5 to 2 basis points above office sector returns. Weak near-term fundamentals in the Singapore and Hong Kong office sectors, coupled with stubbornly high pricing, are key reasons why M&G Real Estate has selectively focused on other sectors elsewhere in the region such as retail property in Australia and Korea, which offers higher returns, and Japan s residential and logistics sectors, where the returns are less volatile. As some of these structural trading opportunities become increasingly crowded and the low-hanging fruit largely gets picked, we believe that new tactical opportunities in currently-weak markets could drive the next wave of transactions. With global capital still on the lookout for diversified real estate returns, low interest rates and pockets of fundamental property strength are likely to keep both prime and secondary property yields in Asia down in the near-term. Faced with declining prospective returns and limited availability of assets, investors are increasingly looking outside of traditional core sectors. By carefully balancing the risks and potential returns, we believe there is scope for investors to continue to be rewarded in the region. Development projects, for example, could provide investors with exposure to closely-held sectors that are historically difficult to access. Sourcing for deals in secondtier cities with stable domestic fundamentals could be another avenue for rewarding risk-adjusted returns. Q2 21 Q2 22 Q2 23 Q2 24 Q2 25 Q2 26 Q2 27 Q2 28 Q2 29 Q2 21 Q2 211 Sydney Melbourne Brisbane Perth Tokyo Osaka Singapore Seoul Source: PMA. Q2 212 Q2 213 Q2 214 Q2 215 Hong Kong Q2 216 Sourcing for deals in second-tier cities with stable domestic fundamentals could be another avenue for rewarding risk-adjusted returns. 6
7
8 For more information Yip Kai Research Analyst kai.yip@mandg.sg Richard Gwilliam Head of Property Research +44 () richard.gwilliam@mandg.com Lucy Williams Director, Institutional Business UK and Europe, Real Estate +44 () lucy.williams@mandg.com Stefan Cornelissen Director of Institutional Business Benelux, Nordics and Switzerland +31 () stefan.cornelissen@mandg.co.uk Christopher Andrews, CFA Head of Client Relationships and Marketing, Real Estate chris.j.andrews@mandg.com IMPORTANT INFORMATION: Not for further distribution. The value of investments can fall as well as rise. This article reflects M&G Real Estate s present opinions reflecting current market conditions. They are subject to change without notice and involve a number of assumptions which may not prove valid. The distribution of this article does not constitute an offer or solicitation. It has been written for informational and educational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. The services and products provided by M&G Investment Management Limited are available only to investors who come within the category of Professional Client as defined in the Handbook published by the UK Financial Conduct Authority. Information given in this document has been obtained from, or based upon, sources believed by us to be reliable and accurate although M&G Real Estate does not accept liability for the accuracy of the contents. Notice to recipients in Australia: M&G Investment Management Limited does not hold an Australian financial services licence and is exempt from the requirement to hold one for the financial services it provides. M&G Investment Management Limited is regulated by the Financial Conduct Authority under the laws of the UK which differ from Australian laws. Notice to recipients in Hong Kong: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. Notice to recipients in Singapore: This document has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this document and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of shares may not be circulated or distributed, nor may shares be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor pursuant to Section 34 of the Securities and Futures Act, Chapter 289 of Singapore (the SFA ) or (ii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA. M&G Investments and M&G Real Estate are business names of M&G Investment Management Limited and are used by other companies within the Prudential Group. M&G Investment Management Limited is registered in England and Wales under numbers with its registered office at Laurence Pountney Hill, London EC4R HH. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. M&G Real Estate Limited is registered in England and Wales under number with its registered office at Laurence Pountney Hill, London EC4R HH. M&G Real Estate Limited forms part of the M&G Group of companies. M&G Investment Management Limited and M&G Real Estate Limited are indirect subsidiaries of Prudential plc of the United Kingdom. Prudential plc and its affiliated companies constitute one of the world s leading financial services groups and is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America. DEC 16 / 17481
Real estate market outlook Asia Pacific
December 2014 Real estate market outlook Asia Pacific Part of the M&G Group Executive summary Economic outlook remains firm Leasing fundamentals improving in most Asia Pacific markets Accommodative monetary
More informationFebruary 2019 Asia Real Estate Market Outlook
REALESTATE February 19 Asia Real Estate Market Outlook For Investment Professionals only Notice to investors in Australia. M&G Investment Management Limited (MAGIM) and M&G Alternatives Investment Management
More informationImpact of higher interest rates on UK commercial property
For Investment Professionals only July 2018 Impact of higher interest rates on UK commercial property Gradual transition towards a comparatively lower new normal for interest rates Relationship between
More informationJuly Asia Real Estate Market Outlook. For Investment Professionals only
July 2018 Asia Real Estate Market Outlook For Investment Professionals only Executive summary Attractive prospects for APAC real estate supported by improving structural and early economic upcycle drivers
More informationPerspectives: The impact of QE on European property markets
April 15 Perspectives: The impact of QE on European property markets The European Central Bank (ECB) plans to inject 1.1 trillion into the eurozone economy through its new quantitative easing (QE) programme
More informationReal Estate Market Outlook UK
January 2017 Real Estate ket Outlook UK Part of the M&G Group For investment professionals only Front cover photo: Hardman Square, Manchester. Executive summary Economy shrugs off initial Brexit-related
More information2017 Mid-Year Commercial Real Estate Outlook for Asia Pacific
2017 Mid-Year Commercial Real Estate Outlook for Asia Pacific REAL ASSETS REAL ESTATE INVESTING TEAM INVESTMENT INSIGHT 2017 The global macroeconomic landscape continues its shift away from highly accommodative
More informationQuarterly market summary
Quarterly market summary 4th Quarter 2016 Economic overview Economies around the world appear to be relatively resilient, with data signalling that in many countries, economic activities are expanding
More informationREAL ESTATE. October 2018 Europe Real Estate Market Outlook. For Investment Professionals only
REAL ESTATE October 2018 Europe Real Estate Market Outlook For Investment Professionals only Executive summary Economic growth softens, but macro tailwinds still strong Majority of European markets now
More informationQuarterly market summary 4th Quarter 2018
POOLED PENSIONS Quarterly market summary 4th Quarter 2018 Economic overview As the quarter progressed, investors became increasingly concerned about the outlook for the world economy. The perception was
More informationQuarterly market summary
Quarterly market summary 3rd Quarter 2017 Economic overview Economic data released during the quarter seemed to signal a continuation of synchronised global recovery in almost all regions. This is being
More informationFund Management Diary
Fund Management Diary Meeting held on 11 th December 2018 Losing Momentum After a strong start to the year, global growth peaked in the first of 2018 and doesn t look like regaining momentum. Trade tensions
More informationAsian Insights What to watch closely in Asia in 2016
Asian Insights What to watch closely in Asia in 2016 Q1 2016 The past year turned out to be a year where one of the oldest investment adages came true: Sell in May and go away, don t come back until St.
More informationHong Kong Economy: Recovering from Recession?
Irina Fan Senior Economist irinafan@hangseng.com Joanne Yim Chief Economist joanneyim@hangseng.com September 29 Hong Kong Economy: Recovering from Recession? Hong Kong staged a strong rebound in the second
More informationPROPERTY INSIGHTS. Market Overview. Office take-up rebounded. Hong Kong Quarter 3, 2012
PROPERTY INSIGHTS Hong Kong Quarter 3, Market Overview Office take-up rebounded Benefited from higher Great A office take-up in decentralised markets, overall net absorption increased significantly from
More informationECONOMIC PROSPECTS FOR HONG KONG IN Win Lin Chou, ACE Centre for Business and Economic Research, Hong Kong
ECONOMIC PROSPECTS FOR HONG KONG IN 2014-15 Win Lin Chou, ACE Centre for Business and Economic Research, Hong Kong I. The Current Trends Real gross domestic product (GDP) in Hong Kong slowed to 1.8 percent
More informationMarket volatility to continue
How much more? Renewed speculation that financial institutions may report increased US subprime-related losses has sent equity markets tumbling. How much more bad news can investors expect going forward?
More informationQuarterly market summary
Quarterly market summary 2nd Quarter 2017 Economic overview Economic indicators, such as employment statistics, manufacturing activity and company profits, seem to indicate that the global economy is recovering
More informationReal Estate Market Outlook Continental Europe
September 217 Real Estate Market Outlook Continental Europe Part of the M&G Group Executive summary Eurozone growth continues to gather momentum with recent actual data surprising on the upside Loose monetary
More informationGLOBAL REAL ESTATE SECURITIES Market Commentary Q1 2017
GLOBAL REAL ESTATE SECURITIES Market Commentary Q1 2017 EXECUTIVE SUMMARY GLOBAL REAL ESTATE STOCKS WERE POSITIVE DURING Q1 2017 Real estate stocks moved higher during the first quarter as economic releases
More information2012 6 http://www.bochk.com 2 3 4 ECONOMIC REVIEW(A Monthly Issue) June, 2012 Economics & Strategic Planning Department http://www.bochk.com An Analysis on the Plunge in Hong Kong s GDP Growth and Prospects
More informationOutlook for Australian Property Markets Brisbane
Outlook for Australian Property Markets 2009-2011 Brisbane Update August 2009 Outlook for Australian Property Markets 2009-2011 Brisbane Residential Update August 2009 Population growth continues to surge
More informationAustralian Equity IMPROVING OUTLOOK FOR A TRANSITIONING ECONOMY
FOR INVESTMENT PROFESSIONALS ONLY. NOT FOR FURTHER DISTRIBUTION. PRICE POINT December 2015 Timely intelligence and analysis for our clients. Australian Equity IMPROVING OUTLOOK FOR A TRANSITIONING ECONOMY
More informationAsia-Pacific Quarterly Outlook
Asia-Pacific Quarterly Outlook JANUARY 2012 Prudential Real Estate Investors 8 Campus Drive Parsippany, NJ 07054 USA 973.683.1745 Phone 973.734.1319 Fax www.prei.com REF: # PFIA 8QSNCX Executive Summary
More informationGLOBAL REAL ESTATE SECURITIES Market Commentary Q4 2016
GLOBAL REAL ESTATE SECURITIES Market Commentary Q4 2016 EXECUTIVE SUMMARY GLOBAL REAL ESTATE STOCKS WERE MODESTLY POSITIVE IN 2016 Real estate stocks finished the year with mid-single digit total return
More informationQuarterly market summary
Quarterly market summary 1st Quarter 2017 Economic overview Data appears to signal that economic activity is picking up around the world, with many forecasts for growth being revised upwards. This has
More informationQ Outlook and Strategy Income Funds
Q3 Outlook and Strategy Income Funds Industry Recognitions for Asian Fixed Income Capabilities Organiser Award Asia Asset Management Best of the Best Performance Awards 2015: Asian Bonds (3 years) 1 Best
More informationQuarterly market summary
Quarterly market summary 4th Quarter 2017 Economic overview Further evidence of synchronised global economic improvement was signalled by higher measures of economic activity and company profits, along
More informationJones Lang LaSalle ULI Investor Sentiment Survey
ULI Investor Sentiment Survey 3Q 2010 Page 1 Jones Lang LaSalle ULI Investor Sentiment Survey Results: 3Q 2010 ULI Investor Sentiment Survey 3Q 2010 Page 2 Jones Lang LaSalle Investor Sentiment Survey
More informationOur goal is to provide a clear perspective on the global financial markets, as well as a logical framework to discuss them, thereby enabling
Our goal is to provide a clear perspective on the global financial markets, as well as a logical framework to discuss them, thereby enabling investors to recognize both the opportunities and risks that
More informationCBRE RESEARCH R E A L E S TAT E M A R K E T O U T LO O K
R E A L E S TAT E M A R K E T O U T LO O K TABLE OF CONTENT PAGE 05 PAGE 07 Softer growth ahead PAGE 13 PAGE 20 Workplace efficiency will be key Creating the total retail experience 2 TABLE OF CONTENT
More informationSchroder Asian Income Monthly Fund Update
Schroder Asian Income Monthly Fund Update Fund Performance As at 30 September 2014, SGD 1 month Year to date Since launch* Schroder Asian Income Fund (Bid-Bid) (%) -1.7 8.4 35.2 Schroder Asian Income Fund
More informationNavigating Asian equities in 2017
December 2016 16 Navigating Asian equities in 2017 With Christmas around the corner, it s almost the end of 2016. How would investors depict 2016? Surprised? Startled? Shocked? Few would argue that Trump
More informationPROPERTY INSIGHTS. Market Overview. Central s rental drop slows. Hong Kong Quarter 2, 2012
PROPERTY INSIGHTS Hong Kong Quarter 2, 212 Market Overview Central s rental drop slows While office rents in Sheung Wan/Central/ Admiralty dropped 3.3% quarter-on-quarter (q-o-q) to reach HK$17 (US$13.7)
More informationEuropean Market Outlook The Risks & the Opportunities Guy-young LAMÉ Associate Director Research Europe, Invesco Real Estate
European Market Outlook The Risks & the Opportunities Guy-young LAMÉ Associate Director Research Europe, Invesco Real Estate This presentation is issued by Invesco Real Estate for Professional Clients
More informationANNUAL HONG KONG INVESTOR SURVEY REPORT 2018
Daniel Shih Senior Director Research Hong Kong & South China +(852) 2828 9888 daniel.shih@colliers.com Antonio Wu Deputy Managing Director Hong Kong +(852) 2822 0733 antonio.wu@colliers.com ANNUAL HONG
More informationECONOMIC PROSPECTS FOR HONG KONG IN Win Lin Chou, ACE Centre for Business and Economic Research, Hong Kong
ECONOMIC PROSPECTS FOR HONG KONG IN 2016-17 Win Lin Chou, ACE Centre for Business and Economic Research, Hong Kong I. The Current Trends Real gross domestic product (GDP) in Hong Kong increased 1.7 percent
More informationInvestment strategy update Fundamentals remain solid despite strong volatility
For intermediaries only. Not for further distribution. 07 February 2018 Investment strategy update Fundamentals remain solid despite strong volatility Key takeaways Global market volatility picked up strongly
More informationTaking the right path. This is just for UK advisers it is not for use with clients
Taking the right path This is just for UK advisers it is not for use with clients Disclaimer This document has been prepared by Prudential Portfolio Management Group Limited ( PPMG ) for informational
More information3 Jan Executive Summary
Executive Summary Key Macroeconomic Takeaways Continued recovery is expected for 2011, but the pace of growth is likely to be slower than recent trends. Asset Class Allocation Increased risk appetite is
More informationQ HK$billion Total exports. Feb HK$billion Private Consumption Expenditure. HK$billion Q Dec 2010 Feb 2011 %
PROPERTY INSIGHTS Hong Kong Quarter 1, 2011 Market Overview Hong Kong s real GDP increased by 6.2% year-on-year (y-o-y) in Q4, whereas the growth is primarily driven by merchandise trading and financial
More informationMarch June Summary. A sharp improvement in nominal growth. Components of GDP. 4Q16 GDP Growth
GDP Australian 4Q16: GDP: A return XXX to growth June 2015 March 2017 Summary The economy returned decisively to growth in the final quarter of 2016, recording 1.1% growth q-q. This was boosted by household
More informationSada Reddy: Fiji s economy
Sada Reddy: Fiji s economy Presentation by Mr Sada Reddy, Deputy Governor of the Reserve Bank of Fiji, to the FIJI NZ Business Council, Suva, 3 October 2008. * * * Outline The outline of my presentation
More informationReal Estate Market Outlook UK
July 217 Real Estate Market Outlook UK Part of the M&G Group For investment professionals only Front cover photo: Hardman Square, Manchester. Executive summary UK economic growth moderates, but still supportive
More informationECONOMIC PROSPECTS FOR HONG KONG IN Win Lin Chou, ACE Centre for Business and Economic Research, Hong Kong
ECONOMIC PROSPECTS FOR HONG KONG IN 2015-16 Win Lin Chou, ACE Centre for Business and Economic Research, Hong Kong I. The Current Trends Real gross domestic product (GDP) in Hong Kong increased 2.8 percent
More informationInvestment Report The Flexible Guarantee Bond and Flexi Guarantee Plan
Investment Report 2011 The Flexible Guarantee Bond and Flexi Guarantee Plan The Flexible Guarantee Bond and Flexi Guarantee Plan Investment Report 2011 This information does not constitute investment advice
More informationResearch China A turn in construction to be a game changer
Investment Research General Market Conditions 31 March 2016 Research China A turn in construction to be a game changer The hard landing in Chinese construction looks set to be ending. We look for a gradual
More informationOutlook 2015: Europe & Germany
Part of the M&G Group Outlook 215: Europe & Germany Research presentation 27 th November 214 European Economic Fundamentals Update & Outlook 2 Economic recovery broadening GDP growth by country Q3 214
More informationExplore the themes and thinking behind our decisions.
ASSET ALLOCATION COMMITTEE VIEWPOINTS First Quarter 2017 These views are informed by a subjective assessment of the relative attractiveness of asset classes and subclasses over a 6- to 18-month horizon.
More informationEUROPEAN LONG/SHORT JANUARY 2016
EUROPEAN LONG/SHORT JANUARY 2016 FOR PROFESSIONAL CLIENTS ONLY There was certainly no shortage of talking points for investors in 2015. Monetary easing, low oil prices and political upheaval drove investor
More informationInvestment Update UK Institutional Funds April 2018
Investment Update UK Institutional Funds April 2018 This communication is intended for investment professionals only and must not be relied on by anyone else. After some deceleration in global activity
More informationHSBC GIF Managed Solutions - Asia Focused Conservative Quarterly fund report Q3 2014
HSBC GIF Managed Solutions - Asia Quarterly market review Volatility picked up in markets in the third quarter as it became clear that policy was diverging between the major economies. A major feature
More informationAsian Insights Third quarter 2016 Asia s commitment in policies and reforms
Asian Insights Third quarter 2016 Asia s commitment in policies and reforms One of the commonalities between most Asian governments is the dedicated commitment they have in using policies and initiatives
More informationHSBC GIF Managed Solutions - Asia Focused Conservative Quarterly fund report Q3 2016
HSBC GIF Managed Solutions - Asia Quarterly market review Asian assets have performed well in an interesting third quarter of 2016. Late in Q2 the surprise vote for the UK to leave the European Union created
More informationMarket Bulletin. 4Q15 earnings recap: The never-ending story of oil and the dollar. February 16, In brief. Earnings recap
Market Bulletin February 16, 2016 4Q15 earnings recap: The never-ending story of oil and the dollar In brief The 4Q15 earnings season has been disappointing, with earnings per share (EPS) expected to decline
More informationQuarterly market summary
Quarterly market summary 1st Quarter 2018 Economic overview Late in the first quarter of 2018, a potential global trade war dominated the headlines. President Trump imposed tariffs on various imports into
More informationFinancial Market Outlook: Further Stock Gain on Faster GDP Rebound and Earnings Recovery. Year-end Target Raised
For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com Financial Market Outlook & Strategy: FurtherStock Gains Likely, Year-end Target Raised. Bond Under Pressure
More informationQuarterly market summary 3rd Quarter 2018
POOLED PENSIONS Quarterly market summary 3rd Quarter 2018 Economic overview An escalating trade war between the US and China was very much at the forefront of investors minds during the third quarter.
More informationJune Summary. Business investment weighs on growth. 1Q15 GDP Growth. Components of GDP
Mar 95 Jul 96 Nov 97 Mar 99 Jul 00 Nov 01 Mar 03 Jul 04 Nov 05 Mar 07 Jul 08 Nov 09 GDP Australian 1Q15: GDP: An Export XXX Story June 2015 June 2015 Summary Business investment weighs on growth GDP grew
More informationOutlook and Strategy Asia/Global Funds
Q4207 Outlook and Strategy Asia/Global Funds Investment Theme Interest Rate Normalisation Causes Short-term Volatility for Global Bonds The strong economic data in the U.S. and eurozone will continue to
More informationMonthly Outlook. June Summary
Monthly Outlook June 2015 Summary Yields of US Treasuries (USTs) rallied in May, with the 2-year and 10-year yields up 4 and 9 basis points (bps) respectively as compared to end-april levels. During the
More informationAREITs Safe as houses?
Schroders AREITs Safe as houses? By David Wanis, Portfolio Manager, Multi Asset and Helen Mason, Credit Research Analyst Real estate is always good as far as I m concerned. Donald Trump We last documented
More informationISA RESEARCH BRIEFING
ISA RESEARCH BRIEFING The Leading Growth Markets for Exporters July 31, 2018 Without a doubt, these are worrying days for exporters. Whether it is a business that is counting on export markets for much
More informationPrudential Dynamic Growth Funds Quarterly Update Quarter
Prudential Dynamic Growth Funds Quarterly Update Quarter 2 2018 This is for information only and is designed for Investment Professionals. This is the quarterly update for the Prudential Dynamic Growth
More informationGlobal Property Market Outlook
Global Property Market Outlook Q3 2017 Paris Executive Summary The outlook for the global economy remains positive with output expected to pick-up in 2017 along with inflation. These trends should support
More informationGrand Paris project: beyond the CBD office investment opportunities
Grand Paris project: beyond the BD office investment opportunities For Investment Professionals Only Executive summary By 2030, the 26 billion Grand Paris project will add a further 200km to the capital
More informationUpside Risk to Inflation and Downside Risk to Growth
Irina Fan Senior Economist irinafan@hangseng.com Joanne Yim Chief Economist joanneyim@hangseng.com July 28 Upside Risk to Inflation and Downside Risk to Growth The economic landscape has changed significantly
More informationFund Management Diary
Fund Management Diary Meeting held on 18 th September 2018 Turkish crisis leading to recession Falls in the lira have caused a sharp pick-up in inflation which, coupled with a severe tightening of financial
More informationExplore the themes and thinking behind our decisions.
ASSET ALLOCATION COMMITTEE VIEWPOINTS Fourth Quarter 2016 These views are informed by a subjective assessment of the relative attractiveness of asset classes and subclasses over a 6- to 18-month horizon.
More informationEuropean Investment Bulletin
European Investment Bulletin Spring 2009 Prime yield decompression per sector (yoy) Rents in decline in line with business sentiment 200 CBD offices Warehouses Shopping Centres European average prime office
More informationEmerging Trends in Real Estate 2014 Asia Pacific
Emerging Trends in Real Estate 2014 Asia Pacific 2014 is our 8 th annual forecast for the Asia Pacific region Most predictive industry forecast Based on surveys/interviews with over 400 industry leaders
More informationFrankfurt am Main 25 November Capital Markets Outlook 2016: Broad diversification key to stable portfolios
Release Frankfurt am Main 25 November 2015 Capital Markets Outlook 2016: Broad diversification key to stable portfolios Deutsche Bank expects global economy to grow by nearly 3.5 percent Central banks
More informationPROPERTY INSIGHTS. Market Overview. TMT sector emerges as a new driver of office market. Citigold. Hong Kong Quarter 3, 2013
PROPERTY INSIGHTS Hong Kong Quarter 3, 2013 Citigold TMT sector emerges as a new driver of office market Market Overview In Q3, leasing demand for office softened, and Figure 1 overall net absorption within
More informationTHINK: Australia Finding resilience in industrial
Better growth outlook in 2018 We hold a broadly positive view of the Australian economy over the medium-term for a number of reasons. Firstly, despite lingering uncertainty over the strength of the consumer
More informationSIP Aggressive Portfolio
SIP LIFESTYLE PORTFOLIOS FACT SHEET (NOV 2015) SIP Aggressive Portfolio SIP Aggressive Portfolio is a unitized fund, which is designed to provide long term capital growth. It is designed for those who
More informationPROPERTY INSIGHTS. Market Overview. Investors active amid improved market sentiment. Citigold Private Client. Hong Kong Quarter 4, 2013
Citigold Private Client PROPERTY INSIGHTS Hong Kong Quarter 4, 213 Investors active amid improved market sentiment Market Overview This quarter, about 891, sq ft of new office space was completed, bringing
More informationAsia Pacific Investment Trends
Asia Pacific Investment Trends Turnover rises in solid start to the year Sentiment remains positive Cross-border investment rebounds Fund raising activity slows Transaction activity expected to remain
More informationORSO 職業退休計劃. Fidelity Advantage Portfolio Fund
ORSO 職業退休計劃 Fidelity Advantage Portfolio Fund Semi-Annual Report and Accounts For the period ended 30 June 2018 SEMI-ANNUAL REPORT AND ACCOUNTS - FOR THE PERIOD ENDED 30TH JUNE 2018 Contents Pages Management
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy October 2009
Prudential International Investments Advisers, LLC. Global Investment Strategy October 2009 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationOUTLOOK. What s in store for investors in 2019?
OUTLOOK What s in store for investors in 2019? The key phrase for 2018 has been volatility. The prices of stocks and bonds have fluctuated significantly as investors tried to digest a range of political
More informationNovember PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy November 2015 John Praveen, PhD Chief Investment Strategist FOR MORE INFORMATION CONTACT: Theresa Miller Phone:
More informationMinutes of the Monetary Policy Meeting of the Reserve Bank Board
Minutes of the Monetary Policy Meeting of the Reserve Bank Board Sydney 4 December 2018 Members Present Philip Lowe (Governor and Chair), Guy Debelle (Deputy Governor), Mark Barnaba AM, Wendy Craik AM,
More informationPROPERTY INSIGHTS. Market Overview. Decentralised office leasing gains pace. Hong Kong Quarter 1, DTZ ofice rental index ( F)
PROPERTY INSIGHTS Hong Kong Quarter 1, 213 Market Overview Decentralised office leasing gains pace In Q1 213, overall office net absorption increased quite substantially and reached 417,688 sq ft, thanks
More informationAsia Pacific Real Estate Strategic Outlook
Marketing Material Research Report Asia Pacific Real Estate Strategic Outlook February 218 Please note certain information in this presentation constitutes forward-looking statements. Due to various risks,
More information7.50% Mexico: Another rate hike this week. Economic and Financial Analysis
Economic and Financial Analysis 5 February 2018 Article 5 February 2018 Mexico: Another rate hike this week Global Economics And the balance of risks is tilted towards more rate hikes than currently expected,
More informationWorld Economic outlook
Frontier s Strategy Note: 01/23/2014 World Economic outlook IMF has just released the World Economic Update on the 21st January 2015 and we are displaying the main points here. Even with the sharp oil
More informationThe Hong Kong Economy in Contraction Mode
Irina Fan Senior Economist irinafan@hangseng.com Joanne Yim Chief Economist joanneyim@hangseng.com 22 December 08 The Hong Kong Economy in Contraction Mode Hong Kong is in recession and leading economic
More informationQuarterly market summary
Quarterly market summary 2nd Quarter 2018 Economic overview There was increasing evidence over the quarter that global economic growth seems to be moderating somewhat albeit from high levels seen in 2017
More informationPROPERTY INSIGHTS. Market Overview. Finance sector active once again in Central. Citigold. Hong Kong Quarter 1, 2014
PROPERTY INSIGHTS Hong Kong Quarter 1, 2014 Citigold Finance sector active once again in Central Market Overview The finance sector was very active in Central and continued to be the most active demand
More informationNORTH SYDNEY COMPRESSING YIELD: H O W LO W I S I T G O I N G TO G O? CI AUSTRALIA MARKET RESEARCH
NORTH SYDNEY COMPRESSING YIELD: H O W LO W I S I T G O I N G TO G O? CI AUSTRALIA MARKET RESEARCH INTRODUCTION In the financial year 2017, North Sydney office market has continued to experience a boom.
More informationOctober 15, 2014 OUTLOOK
OUTLOOK October 15, 2014 While investor focus in recent years has centered on the outlook for monetary policy, the collective gaze is increasingly turning toward the prospect of sustainable economic growth.
More information2019 Annual Outlook Volatility & Opportunities in the Late Stage Bull Market
2019 Annual Outlook Volatility & Opportunities in the Late Stage Bull Market Asia Pacific Wealth Management December 2018 INVESTMENT PRODUCTS: NOT A BANK DEPOSIT. NOT GOVERNMENT INSURED. NO BANK GUARANTEE.
More informationEconomic Update. Executive Summary
Analyst Hillary Ho Li Ling +6565311517 hillaryho@phillip.com.sg Economic Update Executive Summary United States: Impact of Operation Twist and Obama s job plan on the economy likely to be limited in the
More informationDoes short-term investment performance matter?
Does short-term investment performance matter? September 2017 Most clarity clients invest for long-term growth, whether this is in a SIPP, ISA or taxable investment funds. In line with this long-term view,
More informationOUTLOOK WESTERN AUSTRALIA S TURNING POINT ABOUT OUTLOOK
OUTLOOK February 2018 I Chamber of Commerce and Industry of Western Australia (Inc) WESTERN AUSTRALIA S TURNING POINT ABOUT OUTLOOK Outlook is CCIWA s biannual analysis of the Western Australian economy.
More informationFixed Income. EURO SOVEREIGN OUTLOOK SIX PRINCIPAL INFLUENCES TO CONSIDER IN 2016.
PRICE POINT February 2016 Timely intelligence and analysis for our clients. Fixed Income. EURO SOVEREIGN OUTLOOK SIX PRINCIPAL INFLUENCES TO CONSIDER IN 2016. EXECUTIVE SUMMARY Kenneth Orchard Portfolio
More informationSEB MERCHANT BANKING COUNTRY RISK ANALYSIS 28 September 2016
SEB MERCHANT BANKING COUNTRY RISK ANALYSIS 28 September 2016 Higher foreign reserves and lower financing needs following the debt restructuring in 2015 have reduced external vulnerability. In addition,
More informationQuarterly Economic Outlook: Quarter on 25 September 2018 Strong Economic Expansions amidst Uncertainty of Trade War
Foregin Direct Investment (Billion USD) China U.S. Asia World Quarterly Economic Outlook: Quarter 3 2018 on 25 September 2018 Strong Economic Expansions amidst Uncertainty of Trade War Thai Economy: Thai
More informationHAS THE CHINA COLLAPSE FINALLY ARRIVED?
Sinology by Andy Rothman January 22, 2019 a Macro data in the last quarter of 2018 didn t slow sharply. The growth rates of household consumption and private investment actually accelerated. a This year,
More informationFund Management Diary
Fund Management Diary Meeting held on 12 th March 2019 Earnings to weigh on emerging market equities A slowdown in both the United States and Chinese economies will weigh heavily on export growth in the
More information