Asia-Pacific real estate market outlook mixed – S&P

Asia-Pacific real estate markets are facing a mixed outlook, driven by a combination of policy changes and external factors, according to a recent report by S&P Global Ratings.

In Indonesia, the residential property sector is navigating uncertainty due to potential tax policy shifts. The expiration of planned property value-added tax (VAT) reductions by the end of 2024 could lead to a five per cent to 10 per cent decline in residential property sales. However, the incoming administration’s proposal to eliminate these taxes could significantly boost the sector.

S&P Global Ratings anticipates lower refinancing risks for Indonesian developers in 2025, thanks to proactive liability management strategies.

Vietnamese developers are expected to see a gradual recovery from recent lows, supported by government policies and overall economic growth. However, the rating agency warns of significant refinancing pressures for the country’s developers.

Singapore’s prime commercial real estate market is viewed as resilient, bolstered by a robust event calendar and rising tourist inflows. Downtown malls and hospitality assets are poised to benefit from these positive trends. Nevertheless, increased office supply could limit rental growth and lead to higher vacancy rates.

Attribution: MT Newswires & S&P Global

Subediting: Y.Yasser