Whether we realize it or not, with Siri, Alexa, Google, and Facebook, we have already started to become contributors to the great consumer focused Artificial Intelligence (AI) disruption. Enterprises, on the other hand, have been slow to figure out the vast AI landscape and how to pragmatically adopt the disruptive technology in order to make efficient use of the three key factors that fuel their engines: time, money, and data.
South Australia is heading towards becoming the most competitive tax jurisdiction for business and commercial property investment in Australia. Stamp duty is a barrier to investment in property, and has become a more significant one when there is a rapid increase in capital values. Last year the SA Government announced changes to parts of the stamp duty legislation with the aim to increase business investment and make SA more competitive. This plan sees stamp duty for certain asset classes cut in three parts with the abolishment of stamp by July 1 2018. The first cut to stamp duty was effective on 5 December 2015 with the second cut effective on 1 July 2017. As we see a lead up to the second cut we are exploring the impact of this time line and the effects this is having on investment in on the commercial property market.
In 2017, companies around the world will spend billions of dollars on their workplaces. But now more than ever, companies must challenge themselves to break old spending habits. The nature of workplace strategy is evolving so rapidly that keeping up — let alone staying ahead of the curve — can be a definite challenge.
2016 was the year flexible workspace took APAC by storm – from local coworking operators scaling rapidly in Beijing and Shanghai, to global juggernaut WeWork taking up large footprints in Shanghai, Hong Kong, Seoul and Sydney. Traditional operator Regus reacted by rolling out its Spaces brand in Singapore, Tokyo and Sydney while others, such as The Executive Centre and Compass Offices are pressing ahead with plans to launch new concepts. Even Servcorp, the market leader in premium serviced offices, has begun to introduce coworking, with an executive feel, in some key locations.
Chinese investment in property in other regions in recent years has been heavily focused on the US. This push to the US has obscured rising intra-Asian property capital flows, which again exceed Asia-to-global flows. Despite firm near-term US economic prospects, we expect slower RMB depreciation and political pressures to cause Chinese investment to shift towards Asian markets from 2017. The continued weight of capital should offset likely rising cost of funds, so that property yields on average stay flat across Asia this year. We remain positive about Asian property, and see particular investment opportunities in China, Hong Kong, Singapore and India.
Major office markets in the U.S. largely remained strong during the second quarter, with no broad change in momentum. Rents were flat in six of the top 10 metro markets tracked in this report, while rising in the other four.
The Eurozone economy continued to outperform initial forecasts for this year. Meanwhile, election results in The Netherlands and France delivered decisive defeats for populist, euro-sceptic parties and reinforced EU unity. These economic tailwinds are in line with the overall office market performance, where leasing activity continues apace on the back of strengthening employment.
The 2017 CBRE European Occupier Survey shows that occupiers’ thinking is strongly focused on introducing efficiency gains and enhanced workplace strategies, underpinned by greater use of technology.
Ireland is on course to become the fastest growing economy in the euro area for a third successive year with the EU estimating that the economy grew by 4.3% in 2016. While it is unlikely that Ireland will retain this position in 2017, the EU are forecasting that Ireland will grow by 3.4% in 2017 which will comfortably surpass the growth rate for the Eurozone as a whole.
A presentation on workplace strategies in Asia.
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