Cushman & Wakefield's Global Property Investment Outlook: Hike in Investment Activity Expected in H2 to Give Strong Finish to 2012

HONG KONG, March 8, 2012 /PRNewswire-Asia/ -- "Despite the currently cautious mood in most global property investment markets, a stronger second half of the year is expected with a potential 20% hike in activity levels forecast, driven by increased confidence and a release of pent-up investor and tenant demand," according to Cushman & Wakefield's latest research, the International Investment Atlas 2012, released today.

Glenn Rufrano, Global President & CEO of Cushman & Wakefield said, "We are witnessing increased risk tolerance in the securities and real estate markets. As the economic news firms, particularly in the sovereign debt and banking markets, these trends are expected to accelerate in the second half of the year."

Cushman & Wakefield anticipate volumes for the year to be little changed overall in 2011, at US$710-720bn, (US$805-815bn including multifamily) but within this total, a potential 20% increase between the first and second halves of the year is expected, with activity picking up due to stronger demand as well as increased investment supply resulting from bank loan sales and recapitalizations.

Asia Pacific -- strong interest to continue with renewed activity in emerging markets in H2

Last year, Asia saw a 42% increase in industrial investment and a 26% rise for retail, with no significant change for offices or hotels. These trends will continue in 2012 with a focus in Japan, Hong Kong and Singapore for industrial, mainly in logistics. In retail, Cushman & Wakefield expect to see continuing interest throughout mainland China as well as the gateway capitals of Singapore and Hong Kong, but capital will also take advantage of the growth in Seoul of sophisticated modern retail centres which have been in very short supply.

John Stinson, Head of Asia Pacific Capital Markets, Cushman & Wakefield, said, "In China, the global investor community is now differentiating and seeing markets within markets, with the key cities of Shanghai and Beijing being the pick for office exposure. Strong turnover will continue to drive excellent fundamentals for investment in mid to high end retail malls in either high street Tier 1 locations or strong Tier 2 cities such as Chengdu."

Kent Fong, Senior Director of Cushman & Wakefield, said, "Generally in Hong Kong, there is still a prices mismatch between the vendors and buyers. It is expected the volume of transactions will still stay low in the first half this year. It is not expected the prices will go down a lot as the leverage of the general vendors is low. In addition, there is inflation. Vendor still uses real estates as hedge against inflation and not willing to slash prices."

About Cushman & Wakefield

Cushman & Wakefield is the world's largest privately-held commercial real estate services firm. Founded in 1917, it has 234 offices in 61 countries and more than 13,000 employees. The firm represents a diverse customer base ranging from small businesses to Fortune 500 companies. It offers a complete range of services within five primary disciplines: Transaction Services, including tenant and landlord representation in office, industrial and retail real estate; Capital Markets, including property sales, investment management, investment banking, debt and equity financing; Client Solutions, including integrated real estate strategies for large corporations and property owners, Consulting Services, including business and real estate consulting; and Valuation & Advisory, including appraisals, highest and best use analysis, dispute resolution and litigation support, along with specialized expertise in various industry sectors. A recognized leader in global real estate research, the firm publishes a broad array of proprietary reports available on its online Knowledge Center at: www.cushmanwakefield.com.