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Savills IM highlights Asia Pacific real estate opportunities

Logistics, multifamily, and central business district (CBD) offices across Asia Pacific to show investment opportunities in 2021

Uprisen angle of Hong Kong skyscraper with reflection of clouds across the high buildings. TZIDOSUN/Shutterstock

In 2021, logistics, multifamily, and central business district (CBD) offices across Asia Pacific will display inviting opportunities as markets recover from the COVID-19 pandemic and investors gain more confidence, reported international real estate investment manager Savills Investment Management (Savills IM).

Despite COVID-19 pandemic recovery, rising inequalities, geopolitical tensions, and climate-related risks would all still exist in 2021, highlighting the importance of disruption to recognise new investment opportunities, as well as protection of enduring portfolios. This involves the capitalisation on structural trends that have rapidly grown from the pandemic.

Savills IM’s 2021 Outlook report titled “Building resilience in global real estate portfolios” forecasts no disintegration in the office market in spite of intensified flexible working arrangements.

Alex Jeffrey, the global chief executive at Savills IM, mentioned, “Our research shows that real estate investors are confident about 2021, and recent positive announcements about the availability of a vaccine could certainly accelerate the recovery, boost sentiment, and help cross-border investments to flow again as more countries in Asia Pacific open up their borders.”

“The pandemic has clearly caused multiple disruptions in the economy and the commercial real estate markets. Nevertheless, in seeking new opportunities, investors should embrace the structural trends that have accelerated because of COVID-19,” he added.

Logistics

Investor sentiment is forecasted to be positive in logistics within the real estate landscape as it is supported by strong fundamentals such as the continuous growth in e-commerce and low overall vacancy rates. Savills IM’s key picks for this category are opportunities in mixed-use logistics facilities such as cold storage for markets that lack modern logistics facilities during rising land prices, and logistics properties throughout Asia Pacific, specifically fulfilment and last-mile distribution centres.

More: Asia Pacific’s property market bounces back in third quarter of 2020, records up to 35% increase

Rising multifamily sector

Multifamily residential investment has become more popular, particularly among institutional investors. Japan is currently the largest opportunity as it is the only established multifamily market in Asia Pacific. Savill IM’s key pick is high-quality assets that provide steady income streams.

CBD offices

Savills IM is confident that properties that are accessible, efficient, and offer good amenities in areas with convenient means of transportation are anticipated to succeed in the long-term. CBD offices are social hubs that enable face-to-face collaboration for knowledge transfer, productivity, learning and mentoring, and higher creativity. Savill IM’s key picks are Grade B or fringe-of-CBD properties in central locations of Seoul and Singapore, as well as offices in regional Japanese cities as more tenants become cost-conscious.

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