The commercial property market in Asia has shown signs of slowing down due to the regional economic downturn. Occupancy rates in the commercial property market in Asia remains vulnerable to global financial market turbulence and are experiencing reductions in demand. The following is a overview of the commercial property market in Asia and our services to support client investment in the commercial property market in Asia:

Reasons for changes in the volume of transactions in the commercial property market in Asia include i) rising costs and difficulties in borrowing funds and ii) the unwillingness of vendors to lower expectations.

According to CB Richard Ellis Research, the Asian retail property market improved at the end of 2009 on the back of stabilizing consumer sentiment across the region. Rising housing prices and the revival of the stock market played a major role in lifting consumer confidence while major policy interventions implemented by Asian governments appear to have been successful in supporting domestic consumption.

Towards the end of 2009, prime retail rents in most cities stabilised, with key markets either recording an uptick or a reduced rate of decline. Prime retail rents for well-located facilities in Guangzhou, Shanghai, Hong Kong and some emerging markets recorded a slight increase on the previous quarter, largely due to tighter availability and/or improved demand for desirable space and landlords’ firm stance towards leasing negotiations (CB Richard Ellis).

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In the commercial retail property market in Asia, tighter credit, inflation and uncertainty about global economies lead retailers to be cautious about expanding in the first half of 2008. However, in 2009 the Asian economies saw important investments in retail property, suggesting an optimistic outlook and a path to recovery in 2010 (CB Richard Ellis).

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Buoyed by the improved economic conditions, the overall level of retail leasing activity at the end of 2009 picked up slightly. Mass market chains in the fashion and food & beverage retailers continued to dominate leasing activity and remained fairly active in searching for new shop fronts (CB Richard Ellis).

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Healy Consultants assists clients with renting, purchasing or selling commercial property in Asia. Our consultants manage our clients' needs from start to finish so they can focus on their business. Services related to the commercial property market in Asia include:

i) Advising on the optimum accounting and tax strategies. Healy Consultants tax specialists use their knowledge of the tax requirements across the different markets in Asia to maximize the return for the client's investment in the commercial property market in Asia.