According to CBRE's Asia Pacific Real Estate Market Outlook (APAC), the commercial property market in the region will continue to recover in the second half of 2021.

Specifically, investment activities will increase. In addition, retail rents in the area are likely to stabilize in 2022, while demand for the office rental segment will improve.

The biggest risk to economies in Asia, especially emerging economies, is new strains of the Covid-19 epidemic. Some experts predict the impact from the epidemic could last for the next 12 months.

"We expect Asian governments to have appropriate monetary policies to support their economies. Low interest rates will continue to encourage investors to put more money into the real estate market." ”, said Dr. Henry Chin, senior leader of CBRE at APAC.

Office market will grow again

In 2021, office leasing activity has gradually improved when demand is on the rebound. In the first 6 months of the year, the office space used increased by 20% over the same period last year. Currently, long-term rental demand is expected to reach 10-15% compared to 2020, higher than the forecast of experts at the beginning of the year. Rents in some markets such as Singapore, Taipei and Seoul are expected to increase by 2023.

Some developers may postpone long-term rentals until disease timelines are clearer. For the rest of 2021, it is expected that new office supply will increase by 60%.

"Companies need to carefully evaluate the office rental market. Currently, the main trend is to use flexible and sustainable offices that combine utilities and healthcare services", Ada Choi, CBRE's head of Career Studies.

"For investors, now is the time to prioritize increasing rental yield to ensure the source of customers by offering attractive incentives. The improvement of office buildings will help investors have stable cash flow. in the medium term,” she added.

Retail market will recover to par before the pandemic

Retail sales in most APAC markets have surpassed or equaled pre-Covid-19 pandemic waves in early 2021. The pandemic has created a consumption trend related to retail retail, luxury goods, sporting goods and clothing.

Retail rents in most countries in the region will remain stable in 2022. Sustained rental demand in commercial centers demonstrates better resilience in the sector. retail.

Logistics thrives on e-commerce

The logistics real estate market in 2021 in APAC is guaranteed thanks to the development of e-commerce. The current period is seeing growth in the expansion of e-commerce platforms. In the first half of this year, a total of 35.6 million logistics space was used, the highest number in history.

Real estate rental prices in the first 6 months of the year increased by 1.6% over the same period. According to CBRE, rents may increase in some markets such as Beijing, Singapore, Melbourne and Hong Kong. Particularly for rent in the southern provinces of Vietnam is expected to recover strongly.

Investment Opportunities

The reason for the significant increase in investment activities in the commercial real estate market in 2021 comes from the accumulation throughout 2020. Investment volume reached $68 billion during this period, equivalent to 63 % of full-year revenue in 2020. Despite the new strains of Covid-19, full-year investment revenue is estimated to increase 15-20% year-on-year.

"Investors should look for opportunities with the office sector in markets like Singapore or Seoul. For the retail sector, countries with a high number of domestic tourists will be suitable markets." Dr. Henry Chin added.

According to Anh Nguyen - CafeLand