GPR/APREA Index March 2020 31 March 2020
- Operational challenges, combined with increased concerns on a second wave of infections in Asia, continued to result in significant underperformance of hospitality, retail and residential sectors in the region. According to STR, Asia Pacific hotel occupancy decreased to 41.2% in February, while RevPAR dropped 36.5% to $44.27, albeit some improvements were reported in March in the hotel sector in China stemming from the resumption of corporate travel.
- Australia was worst hit among larger markets, as its economy entered a period of “hibernation” to contain the spread of COVID-19. The Australian economy had avoided recession for almost 30 years, but in 2020 the economy will be in recession. Taiwan real estate equities and REITS were least impacted by the volatile global macro backdrop especially as it has kept the virus under control.
- Industrial and healthcare sectors were the only sectors that witnessed positive one-year returns through March. Industrial stocks have benefited from the growth in ecommerce as online orders surged. Across the region, fiscal policy is working alongside monetary policy to cushion the COVID-19 blow, which should help limit downside risks.
