Strong Property Market Seen For AsiaPac Until 2024
Bright spots seen in office and logistics spaces
June 17, 2021 – Urban Land Institute (ULI) projected a sustainable and resilient recovery for Asia Pacific’s key real estate markets in the next three years, bouncing back from a recent weakness triggered by the spread of COVID-19.
According to ULI’s inaugural Real Estate Economic Forecast report for the region, the China property market is forecast to lead the pack with 8.75% of real GDP growth in 2021, followed by Singapore at 6.1%, Hong Kong at 4.7%, and Japan at 3%.
Against this upbeat backdrop, ULI said real estate in the four cities is likely to experience a rebound, with bright spots in the office and logistics spaces.
The report said Singapore’s and Tokyo’s office sectors are estimated to return 3.59% and 3.1% respectively before accelerating to 8.63% and 4.3%.
A rapid shift towards e-commerce will also continue to support demand for logistics assets, with rental rates estimated to grow 2.75% in Hong Kong in 2022.
ULI said the outlook for the retail sector remains downbeat this year, with rental rates projected to decline in Singapore and Shanghai as well as Hong Kong.
“The latest ULI Real Estate Economic Forecast paints a bright outlook for the key economies and real estate markets in Asia Pacific, signalling the region’s resilience to the challenges posed by the pandemic,” David Faulkner, president of ULI Asia Pacific said.
“Even so, pockets of uncertainties remain as recovery would depend on the pace of the reopening of the global economy, as well as the re-emergence of the virus which may lead to another round of lockdowns,” he added.
Read full report here..