Logistics, multifamily, and central business district (CBD) offices across Asia Pacific to show investment opportunities in 2021
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.
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.
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.
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.
Demand for co-working spaces shift amid COVID-induced flexible work arrangements
The pandemic may have slowed the momentum of the co-working trend, but pioneers in the industry believe their models can adapt
Agent of change: Transform Architects drives Vietnam design
Thien Duong of Transform Architects is taking a proactive and sustainable approach to redefining the design landscape in Vietnam
6 reasons why Toa Payoh in Singapore is poised to become a sought-after neighbourhood
The venerable Singapore enclave is forging a reputation for forward-thinking design allied to world-class amenities
Build to Rent sector in the UK offers a glimmer of hope for the industry
The Build to Rent (BTR) sector in the UK is a shining light that is increasingly catching the eyes of Asian investors