Ahead of the CoreNet Global Asia Summit that will be held on March 27-29 in Singapore, RFP asked keynote speaker and economist Jonathan Pain for his thoughts on the macro-economic environment and commercial real estate market over the next 12 months.
With this year’s CoreNet Global Summit focusing on the impact that the volatile economic climate is having on the CRE sector in Asia, Jonathan who is a director of JP Consulting NSW Pty Ltd. and the author of the widely read investment newsletter The Pain Report, is due to deliver a presentation entitled “The Global Economy: Emerging Markets and the Changing Balance of Power.”
As part of the run up to the event, we caught up with him to get his views on the state of the financial markets and the world economy, as well as his perspective on the relationship between macro-economics and real estate.
There is a close link, in my view, between the macro environment and real estate in respect of the ‘feedback loops’ and multiplier effects between interest rates, business confidence, consumer confidence and economic growth and its impact upon the real estate markets. To invest, entrepreneurs require confidence. To consume and purchase individuals need a positive outlook on their employment prospects and the economy in general.
Clark Manus has stepped back a little from the busy role as CEO of commercial architecture firm Heller Manus to take on the arguably more hectic life as president of the American Institute of Architects (AIA). However, with skills befitting both positions, he doesn’t see the two roles conflicting, rather a “mutual advantage” exists.
Opportunities in the commercial property sector in mainland China has long been overshadowed by the furore over price bubbles in the residential sector. But commercial property is set to become increasingly lucrative for investors and developers, especially in certain key second and third tier cities, says Dr. Tang Daizhong, deputy dean of the Jingwei Real Estate Research Institute in Shanghai. The institute is affiliated with Tongji University, one of the top research centres for urban planning and architecture in mainland China.
