|
|
 |
| |
| North Asia - Consolidation in progress |
|
| |
After four years of uninterrupted growth, Japans recovery appears to be headed for a pause as global demand softens and the country was hit by a devastating earthquake. The full recovery is likely to be delayed by a few quarters as the fallout from the earthquake and nuclear damage affects confidence and trade. Nonetheless, new opportunities could potentially be thrown up as reconstruction efforts commence. Power shortages in Tokyo and risk mitigation efforts could see some relocation of offices to Osaka. In addition, prime office space in Tokyo will likely tighten on the back of lower supply going forward and residential demand continues to be fuelled by expatriates and the rising trend of single-person households.
Economic conditions are healthier in Korea, where domestic demand has revived, with positive knock-on effects for the retail segment. Favourable demographics and strong consumer sentiment provides for a buoyant retail market outlook in major retail districts such as Gangnam Station and Myeongdong. However, there have been increasing moves to avoid a property and credit bubble situation in the residential sector, in the form of tighter credit controls and tax measures. Investment activity in Seouls office market remain selective due to new stock entering the market.
|
|
