There are significant differences from city to city within Asia.
Sydney is without question the strongest market at the moment. It has seen very strong growth over the last year, particularly in the office sector. We expect this to continue as levels of supply will remain very low all the way through to 2020.
Conversely, in a market like Tokyo, we see the reverse. Supply is increasing through when Tokyo hosts the Olympics in 2020, and so we will expect rental levels to be somewhat depressed.
Meanwhile, in Singapore and Hong Kong, rental growth will be somewhat depressed because of levels of supply. Supply in Singapore is quite high currently and Hong Kong is slightly over-reliant on the finance sector.
It’s a mixed outlook for Asia overall and, without question, Sydney and perhaps Melbourne would be our two markets likely to see the strongest rental growth.