Thought Leadership

Following the COVID-19 pandemic in 2020, Australia’s anticipated gradual recovery in 2021 was derailed by the DELTA variant which returned Sydney, Melbourne and Canberra into extended lockdown and border closures nationally.

The lockdowns and associated travel restrictions have activated Australians to become “double vaccinated” with the 80% target to be achieved by December this year, which will then increase to 90%.

Restricted international travel will recommence in Australia in November 2021 and will gradually increase as travel bubbles are initially established, which will inevitably lead to normal international travel.

Despite the COVID challenges, transaction activity has remained buoyant with $1+ billion sales YTD in 2021, characterised by firm yields, unsatisfied capital, and a scarcity of quality purchase opportunities. 

This augurs well for improved conditions in 2022 after the summer break and we would expect that:

• Domestic leisure will return to key city destinations, having been absent for two years and to experience new hotel inventory
• Domestic leisure will continue to support the regional drive markets
• Corporate activity will begin to rebound in Q1 2022 and continue as Australia “gets back to business”
• International travel will resume and gradually build with IATA expecting that 2019 levels will be reached in 2023/24.

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

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This article was originally published in https://www.savills.co.jp/

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The way we view offices is changing, but they remain pivotal to an organization’s growth. As we emerge stronger from a tough phase, we look at how office space absorption have changed over the last 30 months.

In this report, we observe leasing patterns pre pandemic and post pandemic. While leasing has declined from April 2020, there are some interesting trends that have emerged. Firstly, NCR and Bengaluru emerged as the most resilient office markets. Secondly, occupiers are renewing existing spaces, while postponing fresh leasing decisions. Thirdly, BFSI companies are continuing to expand their footprint, post pandemic.

Occupiers are looking to be in new-generation offices with modern amenities with focus on health and wellness. There will be more emphasis on flexibility, with occupiers keen to explore coworking spaces for a decentralized workforce.

The future is hybrid. Office usage patterns will change, and occupiers will become nimble to maximize efficiency. As occupiers devise their strategies, developers too will become more adaptable.

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

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The future is hybrid. Office usage patterns will change, and occupiers will become nimble to maximize efficiency.

Download the Report Read More