Thought Leadership

Overall office gross absorption across the top six cities was at about 33 million sq feet, 10% higher compared to 2020. Pan-India absorption during the year surpassed the annual gross absorption during 2016-2018 by 7%, signalling a strong revival in occupier confidence.

This article was originally published in https://www.colliers.com/en-in

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• In a year where a raft of measures were unleashed to contain the rate of infections as well as activity in the red-hot residential market, some S$7.3 billion of investment deals were recorded in Q4 2021, bringing the total for the whole year to S$25.8 billion. This reflected a growth of 5.3% from the total amount of S$24.5 billion last year.
• The investment volume in Q4 was primarily led by residential sales, amounting to about S$2.8 billion, as demand remained healthy for prime residential homes. This included the sale of a penthouse unit at Les Maisons Nassim for S$75 million (S$6,201 psf) in late October, as well as a Good Class Bungalow (GCB) within the Kilburn Estate GCB Area (GCBA) where it was reported that crypto billionaire Zhu Su was in the process of acquiring the detached house at S$48.8 million (S$1,532 psf on land).
• The collective sale market also started to gain momentum in Q4 2021, comprising five en bloc deals that were sealed from October to December. This included the sale of Peace Centre and Peace Mansion topping the list at S$650 million, acquired by a joint venture (JV) of CEL Development, Sing-Haiyi Crystal and Ultra Infinity. Watten Estate Condominium was sold for S$550.8 million to a UOL-SingLand JV. Despite the encouraging en bloc activity with homeowners of ageing projects growing increasingly hopeful, the imposition of cooling measures on 15 December 2021 has given pause to the market. In addition to the risks of escalating construction costs, developers also have to contend with pressure stemming from the increased Additional Buyers’ Stamp Duty (ABSD) rate for entities from 25% to 35%.

This article was originally published in https://www.knightfrank.com/

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We’re excited to share CATCH ’22, our Asia Pacific Commercial Real Estate Outlook 2022 paper with you.​

With universal evidence supporting strong rebounds in business confidence and consumer sentiment, the Asia Pacific region is forecast to return to world leading growth in the second half of 2022.​

Our paper focuses on key drivers of recovery, to ensure you CATCH the potential and opportunities of ‘22.

This article was originally published in https://www.cushmanwakefield.com/en/

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Occupier confidence is improving after one-and-half years. Prices are recovering with evident growth of 21% in a span of three months in Q3 of 2021.

Future Flex - A hybrid & productive workspace approach

Strategic agreements for operators

Traditional leases are giving way to models such as:
•Revenue-share model 
•Management contracts
•Hybrid model (fixed minimum rent plus revenue share)
Apart from these, some operators are seen to explore the franchise model, 
although that can pose some risk of brand 

Choice-based model for occupiers
Occupiers are evaluating the concept of ‘work from near-home’ through 
satellite and hub-and-spoke offices. We foresee that these offices will be an 
amalgamation of traditional leases and flex spaces. 
With gig economy gaining traction, we also predict the need for on-demand 
spaces, as occupiers would require space by the hour/week/month for certain 
teams. Such space requirements can successfully be driven by flex spaces. 

Customized deals for Occupiers
Occupiers are opting for tailor-made mandates with operators for future 
expansion and leasing. Flex operators will take up spaces and customize 
them as per the occupiers’ needs. However, at the same time, operators are 
likely to also incorporate and offer some proportion of ready buildings for 
immediate absorption by start-ups and entrepreneurs.

Report by Colliers & Qdesq

This article was originally published in https://www.colliers.com/en-in

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