This year’s office leasing activity is projected to increase by up to 10 percent year-on-year
According to CBRE’s 2022 Asia Pacific Real Estate Market Outlook, this year is going to break records in the commercial real estate market, and this is all thanks to the region’s steady overall economic growth and pent-up investor demand.
CBRE predicts that total investment volume would go up by at least 5 percent this year to more than USD150 billion, surpassing 2017’s USD142 billion. The rebound is likely to be driven by strong investment activity by close-ended real estate funds, real estate investment trusts, and institutional investors, including those who suspended acquisitions at the start of the pandemic in 2020.
Most offices in the Asia Pacific region have reopened or are in the process of reopening. As businesses return to the office and adapt to the hybrid working setup, the Omicron variant is unlikely to hinder the resurgence of office demand.
Thaiger, based on a report by CBRE, shares that this year’s office leasing activity is projected to increase by up to 10 percent year-on-year as expansionary demand recovers. Buyers seeking to capture flight-to-quality demand will target Grade A offices in prime locations.
This year, office rentals in Australia, China, and India are expected to recover, notes The Edge Markets.
For the third year in a row, Tokyo is the most popular destination for cross-border investment, as it offers a large market of mature multifamily assets. Meanwhile, Singapore continues to be a popular location for cross-border investors, including those outside the Asia Pacific region.
Regional retail rents are expected to rise gradually. The demand for these will be driven by the demand for high-quality assets in key locations.
As for alternative sectors, data centres remain on top with USD4.2 billion worth of properties changing hands in the APAC region in 2021, which is an increase of 88 percent year-on-year. Cold storage and healthcare-related assets such as R&D parks and medical buildings are also gaining momentum, AsianInvestor reports.
The Property Report editors wrote this article. For more information, email: [email protected].
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