Recently, global interest rate movements have been on a highly uncertain path. In the U.S., the latest weak job report is threatening to halt the U.S. Federal Reserve decision to push short-term interest rates higher, lowering the chance of a move at its next meeting in June 2016. In addition, the market has gone from anticipating four rate hikes throughout 2016 to just one or two hikes.
In Asia Pacific, Australia has cut interest rates to an all-time low of 1.75%, while Japan surprised the market early in the year, by announcing a negative interest rate policy. Overall, with the global economy slowing, central banks around the world could continue to ease policy rates to stimulate the economy. Thus, the future movement of interest rates has strong implications on the real estate investment market.
Read our report to find out how global interest rate fluctuations will affect prime office market yields across Hong Kong, Seoul, Shanghai, Singapore, Sydney and Tokyo.