Connect with us on
Connect with us on
MANUFACTURING DRIVES INDUSTRIAL SECTOR REBOUND
Recommendations and Insights
We expect office rents and prices to remain under pressure in H1 2021 before bottoming out mid-year, followed by a more stable H2 before rebounding again from 2022 onwards, assuming that Covid is under control within the first half of 2021. We believe that now is a good time for buyers to explore opportunities in the strata-title office sector:
• End-users with long term real estate needs should explore acquisition options, as office prices and rents could rebound quickly in core locations once the market recovers.
• Investors pursuing office sector exposure in Hong Kong, but had previously found it too expensive, should seize this window of opportunity to enter the market.
• Investors looking for offices with smaller lumpsum transaction values should consider areas in Kowloon, which offers more options and attractive pricing.
The COVID-19 pandemic has exerted an unprecedented toll worldwide. In Asia Pacific, measures to flatten the curve have also ushered in the worst economic slump since the Great Depression with major economies experiencing their first contractions in more than a decade. Still, despite a crippling crisis that can take years to play out, the region’s long-term growth fundamentals remain intact.
Driven by demographic tailwinds, urbanization in the Asia Pacific is an epic boom that will drive the growth of its middle-class and with it, a cycle of rising consumption. Real assets are a play into the region’s structural megatrends that will outlive the pandemic. As the challenge increasingly turns from containment to longer-term recovery, infrastructure investments and REITs are a crucial part of this equation, to fast track the region’s recovery from the pandemic and secure its economic future.
Download the Report Read MoreThe Singapore Business Federation introduced a Code of Conduct for Leasing of Retail Premises in Singapore ("COC") on 26 March 2021. The COC aims to provide a set of guidelines for landlords and tenants of Qualifying Retail Premises to enable a fair and balanced position in lease negotiation, and to provide such landlords and tenants with a governance framework to ensure compliance with an accessible dispute resolution framework.
The COC is effective from 1 June 2021, and it is anticipated that the Government will work closely with the stakeholders to turn the code into legislation. This Update summarises the key features and principles of the COC.
As governments across the world begin to ramp up their vaccination plans, travel will return. We do anticipate some caution in the near term as borders reopen and the mechanism to facilitate mass travel is formalised.
While there will be changes and more emphasis on factors such as hygiene, our inherent wanderlust, relatively cheap cost of travel and pent-up demand will drive our prediction of a V-shaped recovery for the sector over the next three to four years.
