Commercial property markets across Asia Pacific are expected to diverge, as several markets maintain a positive momentum amid a more subdued regional outlook.
The RICS Q4 2019 Asia Pacific Commercial Property Monitor, which received 2956 survey responses, revealed that sentiment remained downbeat for the region as a whole.
Survey respondents anticipate Hong Kong values and rents will fall by more than 5% over the coming year.
Rents in South Korea and China are expected to decline, while capital values will either hold steady or fall slightly.
However, some markets are expected to perform well over the next 12 months.
Commercial rents and capital values are tipped to grow by more than 2% in New Zealand, Vietnam, India and Sri Lanka, while Australia, Japan, Singapore and Thailand are expected to post smaller gains.
The report said the balance of supply and demand appeared to be a drag on capital values and rents across the region, except in Tokyo, Auckland and Vietnam.
Across all market segments, available space to rent has begun to broadly rise for occupiers, alongside landlord incentives.
The subdued outlook comes after sentiment turned “decisively negative” in commercial property markets across the region during the previous quarter.