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Speaker 1: We want to talk property in the Asia Pacific and

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Speaker 1: let's get to Roddy Allen, Chief Research Officer at Asia

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Speaker 1: A j L JEL Sorry j L L Asia Pacific.

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Speaker 1: So Roddy, Uh, let's start with Hong Kong. It's it's

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Speaker 1: a kind of perilous market. I suppose that at the moment,

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Speaker 1: given how great sensitive they are in Hong Kong, um

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Speaker 1: are the prospects dire here or are there some are

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Speaker 1: there some reasons to be optimistic going into next year,

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Speaker 1: particularly if inflation has peaked. Yeah, I mean I think

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Speaker 1: I think there's definitely reason for optimism in Hong Kong.

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Speaker 1: I think we we we've seen price correction and also

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Speaker 1: rental corrections over the last couple of years in Hong Kong.

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Speaker 1: And I think what we're seeing is from an investor perspective. Yeah,

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Speaker 1: if we look at the broader investment outlook globally, and

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Speaker 1: there's certainly plenty of challenges out there, and at the

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Speaker 1: same time, I think investors are looking beyond that and

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Speaker 1: and seeing optimism when it comes to Home Kong. I

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Speaker 1: think also from the Hong Kong perspective, much as they're

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Speaker 1: you know, we're seeing now China opening up. Hong Kong

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Speaker 1: has already opened up, and I think all of that

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Speaker 1: bolds well for the for the city. So it's definitely

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Speaker 1: the case that we're seeing both local and international investor

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Speaker 1: interest there. So uh, we've had other guests on our

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Speaker 1: shows suggesting that even China's property market potentially is a

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Speaker 1: good investment opportunity next year or a bit beyond. What

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Speaker 1: do you see there? I think in terms of China, yeah,

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Speaker 1: I mean we do. We do see optimism out there,

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Speaker 1: and as as China opens up, international investors will come back.

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Speaker 1: I think, you know, we've we've seen corrections in China's

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Speaker 1: property market, but I think, you know, the government has

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Speaker 1: ensured that everything that's been happening out there has been

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Speaker 1: relatively well ordered. Um. I think you know, there are

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Speaker 1: certainly plenty of great deal wins for for China out there.

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Speaker 1: So I think longer term, and both for international investors

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Speaker 1: and domestic investors, there's plenty of opportunity out there in China,

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Speaker 1: especially in sanctors like logistics and where where there there's

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Speaker 1: a long way to play within that. Similarly in data centers, etcetera. Roddie,

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Speaker 1: how much scope is there for some relaxation and some

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Speaker 1: of the macro prudential measures that were put in place,

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Speaker 1: particularly with extremely high down payments necessary and and some

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Speaker 1: other restrictions as well. Some of them have been modestly adjusted,

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Speaker 1: for instance the stamp duty for UH for for non

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Speaker 1: locals UH. But but is there is there much scope

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Speaker 1: for that to be relaxed or are they going to

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Speaker 1: stick to their guns? I think I think there's potential

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Speaker 1: for for for listening there to be honest, and I

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Speaker 1: think you know, in terms of the government supporting the economy,

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Speaker 1: I think that's going to be that that's going to

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Speaker 1: be a focus. So there's definitely um room room for

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Speaker 1: coustures optimism there. So are you are optimistic on hotels

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Speaker 1: in the Apack region next year? Why we we are?

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Speaker 1: I mean what we've seen and this is not just

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Speaker 1: in the Asia Pacific trend. I think we've seen this

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Speaker 1: this globally and looking at looking across the world and

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Speaker 1: as the world and and markets have opened up and

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Speaker 1: we've seen both business and leisure travel come back. What

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Speaker 1: we saw, you know, for the full year twenty twenty

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Speaker 1: two is we finished up the year just now and

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Speaker 1: we've seen investment volumes up of about ten to fifteen

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Speaker 1: percent this year, and we expect to see that continue

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Speaker 1: next year or by about six percent. As essentially um

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Speaker 1: the XL sector and performs very well. I mean, what

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Speaker 1: we've seen in the intail sector globally, and we're beginning

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Speaker 1: to see this in some epack markets is an actual

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Speaker 1: fact that the occupancy and also the spend within hotels

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Speaker 1: actually exceeding the position it was in pre COVID and Roddy.

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Speaker 1: I'm not sure whether Japan is part of your purview,

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Speaker 1: but it's kind of interesting. Is one of the places

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Speaker 1: that interest rates still very low. Uh, let me give

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Speaker 1: you a more open slate outside of Hong Kong and China.

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Speaker 1: What looks good in three there's a lot of opportunity there.

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Speaker 1: I think I'll pick up the Japan. I think Japan

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Speaker 1: probably we would be one of our top pics. And

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Speaker 1: there's there's a number of reasons behind that. And I think,

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Speaker 1: you know, the first thing we've seen is with the

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Speaker 1: strength of US dollar, the weakness of the yen, and

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Speaker 1: for international investors, that makes Japan, you know, highly appealing.

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Speaker 1: We've seen you know, a correction there idle the numbers

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Speaker 1: in front of me for today, but you know, um

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Speaker 1: around about twenty percent, so that that pricing wise, that

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Speaker 1: makes Japan appealing. I think the second point with Japan

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Speaker 1: would be the interest rate position as well. If you

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Speaker 1: look at the spread feed, if you if you're leveraging

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Speaker 1: a real estate deal and looking at at the yields

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Speaker 1: in Japan, that the low cost of capital versus that

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Speaker 1: yields very appealing. Okay, Roddy, thank you very much for

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Speaker 1: joining us. Roddy Allen, chief research officer at j l

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Speaker 1: L usually call him Jones lang Lassalle for the Asia

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Speaker 1: Pacific