U.S. and China business property markets face headwinds however UOB is optimistic on Southeast Asia

Commercial actual property markets within the U.S. and China are financial ache factors to watch in a higher-for-longer fee atmosphere, mentioned Singapore’s United Overseas Bank. But the financial institution stays optimistic about one key area.

“The U.S. commercial real estate remains a hotspot, especially with the low occupancy rates that we have,” Lee Wai Fai, chief monetary officer of UOB informed CNBC’s “Street Signs Asia.”

Vacancy charges for workplace buildings climbed to a document excessive of 18.2% in late 2022.

“The other hotspots will be China, there [are] worries about the quality and whether they can manage the property uncertainty in China,” he added.

China’s property market has struggled with faltering shopper confidence as main builders like Evergrande and Country Garden stay mired in debt issues.

Lee added the world is heading right into a extra “uncertain environment” and the impression of higher-for-longer rates of interest is beginning to filter by the economic system.

The world’s central banks have hiked rates of interest aggressively over the previous 18 months or so in a bid to rein in hovering inflation, with various levels of success.

“China recovery has yet to come about. And of course, the recent geopolitical tension has added to the volatility,” he added.

ASEAN’s resilience

Source web site: www.cnbc.com

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