Our first quarter report has inevitably been overtaken by events in April which have heightened uncertainty as the world weighs the impact of further turbulence in the global trading system over the coming quarters. The prospect of slower growth, higher inflation and elevated interest rates alongside a rebalancing of trade relations means that we can expect both occupiers and investors to remain circumspect for now as caution prevails.
Simon Smith, Asia Pacific
Australia
“Lower interest rates and asset repricing underpin the investment market recovery as increasing uncertainty globally reinforces the appeal of safe-haven investment destinations.” - Katy Dean, Australia
China
“The 2025 'Two Sessions' reaffirmed stable growth goals amid global uncertainty, supported by pragmatic fiscal measures, as China’s real estate sector transitions toward long-term, value-driven investment despite persistent challenges. ” - James Macdonald, China
Hong Kong
“The local office and retail markets face escalating vacancy and abundant upcoming supply as trade tensions ratchet up. With investors content to sit on the sidelines for now, commercial activity is being driven by end-users while high profile distressed sales have been evident in the super luxury residential segment. ” - Jack Tong, Hong Kong
India
“India witnessed improved private equity investment in Q1/2025 on the back of economic positivity and the real estate sector’s promise. Residential real estate has attracted strong interest, accounting for over 50% of the private equity flow. ” - Arvind Nandan, India
Indonesia
“While market performance was mixed across most property sectors in Q1/2025, industrial and high-end residential demonstrated some resilience. ” - Tommy Henria Bastamy, Indonesia
Japan
“Rising interest rates and the possibility of future hikes have heightened investor caution. That said, the size and liquidity of the real estate market in Japan alongside positive spreads remains attractive, sustaining large transaction volumes. ” - Tetsuya Kaneko, Japan
Pakistan
“The hotel industry in the capital city is experiencing strong growth driven by increasing demand for premium lodgings, advancements in hospitality services, and a growing number of domestic and international visitors. ” - Saud Khan, Pakistan
Philippines
“Despite 2025 economic growth forecasts of around 6.1%, Metro Manila's office market faces high vacancy rates and project delays. Landlords are having to adapt to evolving work trends and tenant demands to survive. ” - Joshua De Las Alas, Philippines
Macau
“Macau's sustained GDP growth and steady gaming income supported by government economic policies are bolstering the city’s appeal. Property price adjustments are attracting buyers, boosting market transactions volumes. ” - Franco Liu, Macau
Malaysia
“The strong momentum from 2024 continued into early 2025, led by the industrial sector. Commercial properties, including retail malls and office buildings, also attracted increased interest from investors. ” - Nabeel Hussain, Malaysia
Singapore
“Investment sales got off to a slow start this year but are expected to build momentum as interest rates fall and sellers lower pricing expectations. ” - Alan Cheong, Singapore
South Korea
“Korea’s office market is slowing amid economic headwinds with end-users driving rare closings, whilst the logistics market is seeing active offshore investment. ” - JoAnn Hong, South Korea
Taiwan
“End-users from the technology industry dominated the market, however, volatility stemming from Trump’s reciprocal tariffs and TSMC’s expansion in the US may lead local tech firms to take a cautious approach. ” - Erin Ting, Taiwan
Thailand
“Thailand’s real estate market is being driven by economic growth, rising land prices in the Eastern Economic Corridor (EEC), infrastructure development, and increasing foreign investment, reinforcing its position as a key regional investment hub. ” - Robert Collins, Thailand
Vietnam
“Vietnam is undergoing a geopolitical balancing; the narratives are contrasted starkly. With tariff issues tempered, the domestic economy could be expected to be primed through continued policy improvement and infrastructure investment. " - Troy Griffiths, Vietnam