Real estate firm JLL has released its 2016 City Momentum Index (CMI) which tracks a city¹s short-term socio-economic and real estate momentum, in combination with measures of whether a city has the longer-term foundations for success.
The Index covers 120 major established and emerging business hubs around the world and highlights the top 20 cities where change is occurring most rapidly.
Among the top 20, Asia-Pacific accounts for the largest share with 11 cities among the world¹s most dynamic urban economies. These include established world city Tokyo, and challengers or cities competing for global reach and influence, such as Sydney, Seoul and Shanghai. The top 20 also includes new world cities such as Auckland.
A key feature of this year¹s top 20 cities in the index is the overwhelming dominance of innovation-rich cities, said Jeremy Kelly, JLL’s Director of Global Research.
“JLL has long emphasised that city momentum involves far more than just raw GDP growth – it is crucially about building the foundations of an innovation-oriented economy through technology, creating cutting-edge new businesses, attracting talent and nurturing vibrant inclusive communities,” he added.
China¹s cities in the Top 20 include those moving into higher-value activities and building the foundations for new forms of economic activity in terms of innovation, infrastructure and connectivity. These include Shanghai, Beijing and Shenzhen, according to the report.
Singapore (pictured) dropped from 17th in 2015 into the third quartile in 2016. From being one of the top rental performers globally in 2014, office rents fell by around 10 percent during 2015, with a further 10 percent to 20 percent decline forecast for 2016; while rents have also fallen in the retail sector.
These sharp rental corrections have been the main contributor to the city’s poor real estate momentum scores, although this is improving affordability. Lower levels of real estate investment have also contributed to this poor score – despite Singapore being one of the most popular investment destinations globally.
To read the full JLL City Momentum Index report click here.
