Tokyo named Asia’s most powerful property market

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Tokyo named Asia’s most powerful property market

Real estate consultancy firm Savills has revealed that Tokyo is the most important market in Asia today, based on the 12 Cities report covering the first half of 2016.

The study, which covers residential and commercial real estate, ranks cities based on global connectivity, economic indicators, power and competitiveness.

Placing fourth globally, Tokyo averages USD69,800 per person/year for living and work accommodation costs, nearly half the sum for top placer London (USD112,800 per person/year).

Singapore (fifth globally) follows the Japanese capital, despite recording -6 percent and -3 perent rental growth rates in the residential and office segments, respectively, in 2015.

More: The ultimate guide in overseas property investment in 2016

The rest of the global top 12 are: London (1), New York (2), Paris (3), Hong Kong (6), Sydney (7), Los Angeles (8), Chicago (9), Dubai (10), Shanghai (11) and Moscow (12).

Savills notes that the growth is shifting back from East to West, noting the emergence of new cities that progress with “great velocity” alongside world-class cities. For example, Berlin and Dublin are now considered “upstart cities” bcause of their competitiveness in the digital age.

“Our city ranking analysis highlights two things: first, that rent levels and growth are dependent on cities achieving – and then maintaining or growing – their competitive edge against other global cities,” Savills stated in the report.

In the last 10 years, Mumbai reported the largest capital growth in the world at 184 percent, followed by runners-up Shanghai (173 percent) and Hong Kong (167 percent). Singapore reported the highest 10-year capital growth in Southeast Asia at 105 percent.

Source: http://www.property-report.com/this-city-has-just-been-named-asias-most-powerful-property-market/