Significant policy shifts during the first 100 days of President Trump’s second term, particularly in US trade, tariffs, and deregulation, have introduced notable volatility in global markets. However, despite rising economic uncertainties worldwide, Asia Pacific’s economy and property markets show strong resilience. According to Cushman & Wakefield's Trump 2.0:– Implications for the APAC Economy & Property Markets report, the region's stability is driven by robust domestic factors and solid market fundamentals, helping to counterbalance the global disruptions.
The report offers a comprehensive look at how policy shifts under the new administration reshape the global economic landscape, focusing on the Asia Pacific (APAC) region. It highlights rising uncertainty stemming from the changes to US trade, taxation, and deregulation policies, which have already impacted economic confidence globally, with the APAC region facing varied implications. While APAC entered 2025 with strong momentum, buoyed by resilient domestic demand and continued investments in real estate, the policy turbulence is expected to moderate growth as businesses adopt a more cautious decision-making approach.
Dr Dominic Brown, Head of International Research at Cushman & Wakefield, said, "Uncertainty has been the dominant theme of the first 100 days. While heightened uncertainty typically dampens business and investment confidence, Asia Pacific’s strong fundamentals are helping to cushion the impact. Real estate markets in the region remain resilient, but delays in decision-making by businesses and investors as they navigate the uncertainties are key risks in the near term.”
Additionally, the report highlights a softer global growth outlook for 2025 amid rising US recession risks and emerging signs of stagflation. However, a stronger US economy is expected in 2026, potentially benefiting the APAC region. Trade tensions and evolving tariffs pose risks to export-oriented manufacturing sectors, particularly those linked to the US, yet ongoing supply chain diversification continues to support industrial hubs in Southeast Asia and India. Manufacturers are expected to keep optimising their supply chains in response.
Meanwhile, the APAC commercial real estate sector remains resilient, with strong occupier and investor demand; net office space absorption reached approximately 26 million sq ft in Q1 2025, marking a 20% increase year-on-year. Furthermore, global capital inflows into APAC real estate are rising, driven by a strong US dollar, attractive yields, and growing interest in stable asset classes such as logistics, data centres, and multifamily housing. Falling interest rates are also set further to support commercial real estate investment across the region.
“While risks are elevated, historical trends suggest that Asia Pacific’s property markets are well-positioned to rebound quickly once greater global clarity emerges. It is, therefore, essential for occupiers and investors to stay nimble and adjust their strategies quickly to ride the wave of recovery once it happens,” noted Dr Brown.
