Asia: Land values set for largest decline in over a decade
Land values across Asia Pacific are coming under increasing pressure as developers look to preserve margins. We expect land values for commercial real estate development to fall across most markets and sectors, though the size of the decline will vary widely according to domestic conditions and drivers.
Real estate developers across Asia Pacific are facing a slew of simultaneous headwinds including rapidly accelerating construction costs, higher interest rates, and lower net receipts (gross realisation), which are all eroding development feasibility. Land values are the most elastic component that will have to adjust to improve feasibility.
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