No need to worry, the millennials haven’t ruined everything yet. The Asia-Pacific real estate market will experience moderate growth in 2018. Any of the top financial predictions in APAC can provide opportunities for property developers and owners.  

Still, anyone who has watched CNN can see that the political events of last year is still making ripples through 2018. While you don’t have to worry about major interest rate hikes and volatile exchange rates, geopolitical tension is always the horizon. Nowadays when China sneezes, everybody else catches a cold.

No need to fret, you can use any of these top five financial prediction APAC has in store for 2018 to help you better navigate the year of the dog.

Shifts in the regional business landscape pave the way for overseas opportunities.  

The demand for office space will remain stable in 2018. New Grade A office supply is forecast to rise in India and China, where most new projects are located outside central business districts. With lower occupancy costs, this could encourage occupiers to relocate from expensive areas. The shortage is more severe in Australia CBD – demolition of office buildings are made to make way for residential development, which in turn will also increase the demand for relocation.

Rental growth on the other hand, is concentrated in Singapore and Australia. India also present an upbeat market, with occupiers willing to pay premium for locations with good infrastructure.  

Property developers can take advantage of these trends through an offshore finance solution.

The rise of Unicorn companies.

 

More than 30% of top 100 companies in 2017 are start-up. These companies are funded by venture capital instead of revenue. Market leaders – Asian corporations who are expected to dominate in 2018 – are here to stay, but the rise of smaller players will increase competition.  

Because of this, accounting firms with start-up clients who wants to expand can recommend alternative funding structures. They can look into a flexible finance solution to stay afloat in competitive tech-driven industries.

Talent shortage continues to change the nature of the workplace.

 

The rise of unicorn companies, combined with ageing population and low birth rate, continue to fuel the shortage of talent. Employers now look for buildings that will attract and retain talent. Office spaces that have smart-building features and employee amenities are in demand. The millennial workers of today are not necessarily looking for a glass tower occupied by a multinational company.  They prefer non-traditional office spaces with features that can facilitate collaboration and mobile work.

Property developers and owners need to have a mix of owned or leased and co-working or shared spaces to adapt in a rapidly changing work environment.  They should seek a firm who can provide a finance solution that can maximize the development performance of their mixed-use site.   

Technology continues to drive innovations in retail.

 

Consumers are changing too, as tech adoption is expected to increase in the retail industry.

Back in the day, e-commerce was seen as a competitor to brick-and-mortar businesses. Now, retailers are combining both online and offline sales to facilitate a seamless shopping experience. Stores incorporate experiential elements where customers can test, learn, and experience products instead of being a usual place for transactions.

This kind of strategy will continue to evolve, resulting to an increase in pop-up stores offering specific products and promotions on a limited timeframe. This is very useful for retailers in gaining publicity and testing new products and locations.

Property owners can take advantage of this by incorporating shareable and bookable private spaces for retailers. Find a firm that can assess the most attractive return on investment as part of its finance solution.    

Structural changes lead to new investment opportunities.

 

Office spaces are not the only ones that are changing. Home ownership is out of reach for many people and with the growing pool of millennial renters, there is a lot of opportunities in rental housing.

Mixed-use hubs, which blends residential and commercial properties, are a great way – and opportunity – to address this need of a mobile workforce.

Investors need to be more agile to adopt with the changing needs of businesses and consumers. Instead of just funding, they should partner with a firm that can provide a finance solution for long-term rewards.