BUSINESS shifts out of mainland China could support office leasing markets in the South-east Asian region, real estate consultancy Colliers has suggested.
Property investments could move within the region, into South-east Asia or India, in the wake of the trade war between the United States and China, according to a recent report.
Colliers noted that Vietnam, in particular, has benefited from manufacturers and trade-related companies stepping up their move from China into other, cheaper markets - although the firm also recommended that larger firms, especially those in technology-related sectors, look at Indian cities such as Bengaluru and Hyderabad as well.
Meanwhile, finance, professional services and technology firms moving out of southern China in the near term would likely look to the office market in Singapore or Tokyo, it added.
These changes would come even as up to one-third of office leasing demand in Shanghai is expected to face delays over trade-related uncertainty, according to Colliers projections.
Global property investment into Asia is now expected to stay flat year on year in 2019 at US$24 billion, down from an earlier estimate of growth to US$30 billion.