Vancouver, along with Shanghai and Sydney, is expected to outperform other cities in terms of residential property next year.
The global real estate market will likely improve in 2017, on the back of a predicted advancement in the global economy and strong demand in prime locations, according to Kevin Coppel, Knight Frank’s Regional Head of Asia Pacific.
Taipei Times reported that Coppel believes “the election of Donald Trump to the US presidency sends positive messages to the global property market, as his promise of tax cuts and infrastructure projects will stimulate growth in the world’s largest economy”.
However, he also noted that any improvement would be modest, as various countries keep their property cooling measures in place to rein in the soaring prices. While Trump’s stance on cross-border trade creates uncertainty in the medium- and long-term, Trump’s rhetoric has become more subdued since winning the election.
“Uncertainty is most unfavourable for investment markets, but real estate has proved relatively safe, compared with other investment tools,” said Coppel.
He expects Shanghai, Sydney and Vancouver to outperform other cities within the residential market, and Hong Kong, Tokyo and Sydney to lead the recovery in the commercial market. Chinese investors are expected to play an important role in both segments.
He does not also expect London, which has served as the world’s financial centre for the last 400 years, to lose this status after the Brexit vote. In fact, social media giant Facebook and US banking service provider Wells Fargo have expressed their continued commitment to London.
At the same time, Coppel added that a weaker pound has made London property cheaper and more attractive.
Cheryl Marie Tay, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories, email cheryl@propertyguru.com.sg
