Increased competition among landlords in U.S. multifamily market

The U.S. multifamily rental market continued to feel the effects of new supply in the first quarter of 2018. As an elevated rate of deliveries carried over into 2018, landlords saw vacancy rates rise and rental growth moderate. With an expected 370,000 units set to be delivered over the course of 2018, an environment of gradually softening fundamentals is likely to persist for the next 12-18 months. Thereafter, we anticipate that fundamentals for multifamily product will improve as deliveries slow and demand for housing continues to be strong.

Global Residential Clocks – Rents

Click on a regional clock to view city positions

U.S.: Multifamily Residential

EMEA: Central City

AP: Prime Residential

Source: JLL, May 2018

Institutional investor demand buoyant in most European markets

Institutional investors remain active in continental Europe. Germany saw its second-highest first quarter volumes on record, with domestic capital accounting for 80% of the €7.1 billion total. The UK institutional investment market also registered a solid first quarter, with a marked increase in investment activity outside of London. Robust investment activity was also seen in the Netherlands, Sweden and Spain.

Sentiment remains upbeat in Hong Kong and Singapore

Luxury apartment transaction volumes in Q1 declined from a year ago in Shanghai and Beijing due to limited new supply, despite increasing optimism on the back of the price cap on the primary housing market in Shanghai. In Hong Kong, newly-launched projects continued to be well received, often selling out in less than two weeks, while the collective sales market in Singapore gathered momentum.

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