Outlook for the Asia-Pacific real estate market will begin to recover from the end of 2020 to the end of 2021. In which, the commercial real estate market will recover more slowly.
CBRE has just released an overview report predicting the recovery speed of the real estate market.
According to CBRE’s report, most of the real estate market segments will start to recover from the end of 2020 to the end of 2021. But with the impact of the epidemic, the commercial real estate market will recover more slowly.
Although social distancing and travel restrictions have been eased in most parts of Asia Pacific, the extent of economic activity and the real estate market has recovered. production is generally not uniform across countries.
According to CBRE’s National Recovery Index, based on economic activity, transportation, shopping, entertainment, tourism, and work; New Zealand, China, Taiwan and Vietnam are leading the way.
CBRE expects the industrial and logistics markets to recover quickly from the economic downturn caused by the epidemic. The stimulus factor will come from the development of the e-commerce segment. Other real estate market segments will need more time to adapt to the new development trend.
In particular, the premises and office buildings will be restructured to increase flexibility in meeting diverse rental needs from tenants. Hotels are waiting for the return of group tourists, the retail segment will have to adapt to the strong development of e-commerce…
According to CBRE, technology companies will continue to lead the office market demand. The increasing number of hiring requests from the pharmaceutical industry, along with the recovery of the Chinese market contribute to a positive outlook in the near term.
For the industrial and logistics sectors, rental demand remains vibrant as e-commerce companies develop at a rapid pace. The retail and hotel segments will continue to face many difficulties, although there is still a lot of potential for recovery.
Regarding the investment market, institutional investors in the region are looking for opportunities in the logistics sector through joint ventures or capital investments. Some foreign institutional investors are strategically investing in office properties in prime locations of the gateway cities of Japan, China and Singapore.
Dang Phuong Hang, General Director of CBRE Vietnam, said that the pandemic has left a heavy impact on the world economy. However, the Asia-Pacific region is believed to begin to recover from the end of 2020 until the end of 2021.
During this economic crisis, interest rates will be kept at the lowest level to help stimulate demand for the Asia-Pacific commercial real estate market in the context of the difference between investment rates in real estate and real estate. assets and government bonds are increasing.
“Investors are still very interested in commercial real estate despite the movement restrictions and they are also accessing other investment opportunities such as debt, stable turnover and development land. industry & logistics…”, Ms. Hang said.