市場展望

For prime street retail landlords the debilitating effects of COVID-19 were immediate. With most tenants being small to medium enterprises, they were more affected by sudden revenue loss, than larger scale retailers. The pandemic has forced the major street retail chain tenants to alter their business strategies. Many F&B and fashion chains closed…

For prime street retail landlords the debilitating effects of COVID-19 were immediate. With most tenants being small to medium enterprises, they were more affected by sudden revenue loss, than larger scale retailers. The pandemic has forced the major street retail chain tenants to alter their business strategies. Many F&B and fashion chains closed underperforming outlets which led to further vacancies. Tourism focused street retail in the CBD was hit hardest by travel bans adding to existing Metro related disruptions.

Since early February, many street retailers have not renewed their leases. Those wanting to retain prime locations after the pandemic are either temporarily closed or seeking rent reductions. A recent Savills survey found tenants sought up to -40% discounts compared to the maximum -20% offered.

Australia’s property markets property as a whole remains an attractive asset class particularly when comparing yields to bond rates, combined with the current low interest rate climate. With the Reserve Bank of Australia cutting the official cash rate to a record low of 0.10% in November, and further quantitative easing measures introduced we will see…

Australia’s property markets property as a whole remains an attractive asset class particularly when comparing yields to bond rates, combined with the current low interest rate climate. With the Reserve Bank of Australia cutting the official cash rate to a record low of 0.10% in November, and further quantitative easing measures introduced we will see bond yields fall closer to zero. The COVID-19 pandemic has impacted all property asset classes in Australia to some extent, with both positive and negative outcomes. The retail sector has been the hardest hit as a result of store closures, reduced foot traffic and weak consumer spending.

From both an investor and an occupier point of view we continue to see a flight to quality thematic become increasingly evident. Tenants are seeking quality office space with more flexible terms and we anticipate that as a result of this there will be a divergence of vacancy where secondary stock will find it difficult to compete. Investors continue to seek prime assets with long WALE and diversified tenant compositions, with these assets achieving record yields and capital values. With several large transactions coming to the market around the country or in due diligence we expect to see a strong fi nish to the year and into 2021.

The central government unveiled the new ‘comprehensive reform plan (2020 – 2025)’ (hereinafter referred to as the ‘new plan’) in October as a continuation of Shenzhen’s mission of being ‘Pilot Demonstration Zone of Socialism with Chinese Characteristics’ announced in 2019, providing greater…

The central government unveiled the new ‘comprehensive reform plan (2020 – 2025)’ (hereinafter referred to as the ‘new plan’) in October as a continuation of Shenzhen’s mission of being ‘Pilot Demonstration Zone of Socialism with Chinese Characteristics’ announced in 2019, providing greater autonomy and a higher level of all-round opening-up. Given that the new plan came at a meaningful time—the 40th anniversary of the establishment of the Shenzhen Special Economic Zone (SEZ)—Shenzhen is expected to embrace a new chapter of development.

Additionally, the new plan reinforces Shenzhen’s core engine function and central city position in the Guangdong-Hong Kong Macao Greater Bay Area (GBA). Therefore, the real estate industry is forecast to obtain new development opportunities, with demand for land, office, retail and residential sectors improving.

Beijing government developed multiple plans to help boost the ‘First-Store’ economy, consumer demand and upgrade retail projects in response to COVID-19:

Beijing government developed multiple plans to help boost the ‘First-Store’ economy, consumer demand and upgrade retail projects in response to COVID-19:

• “Announcement to Stabilise Commercial Business Activities Under COVID-19” on February 21st, 2020, encourages shopping mall landlords to deduct rents and help major shopping malls operate during the pandemic by applying for working capital loans;
• “Announcement to Apply for Subsidies For Major Shopping Malls Under COVID-19” on March 31st, 2020, provides subsidies up to RMB500,000 to qualified shopping mall operators;
• “One Policy for One Retail Store” renovation/upgrading of pilot retail

During this time of increased uncertainty, there has never been closer scrutiny on costs across all levels of corporate structures. Cushman & Wakefield’s Asia Pacific Office Fit-out Cost Guide is an essential tool to assist in corporate real estate decision-making regarding both fitting out and reinstating office space.

This year, we have added three cities to our guide, increasing our coverage to…

During this time of increased uncertainty, there has never been closer scrutiny on costs across all levels of corporate structures. Cushman & Wakefield’s Asia Pacific Office Fit-out Cost Guide is an essential tool to assist in corporate real estate decision-making regarding both fitting out and reinstating office space.

This year, we have added three cities to our guide, increasing our coverage to 31 key cities across Asia Pacific. Whether it’s a low, medium, or high quality specification fit-out requirement, this guide serves to assist occupiers in defining their capital planning and relocation budgets.

The guide includes a comprehensive fit-out cost section covering furniture, mechanical & electrical (M&E) works, builder works, audio visual/information technology (AV/IT), and other miscellaneous costs.

Development on new phases continues despite the unspoken moratorium, with several major cloud services increasing their local platforms

Despite the unofficial moratorium on new site development, Singapore continues to lead the greater APAC region in data centre innovation and often as the first market reviewed for regional market entry. Phased buildouts are still continuing…

Development on new phases continues despite the unspoken moratorium, with several major cloud services increasing their local platforms

Despite the unofficial moratorium on new site development, Singapore continues to lead the greater APAC region in data centre innovation and often as the first market reviewed for regional market entry. Phased buildouts are still continuing, with Digital Realty, Equinix, and Iron Mountain all underway on additional capacity and new entrant AirTrunk continuing their initial local campus. Major global cloud services continue to view Singapore as a first-tier location for new releases, with Google Cloud, Alibaba, and Oracle all making further inroads in coming months, and Tencent recently established a Singapore office to focus on regional expansion.

The prize for each platform lies not only in Singaporean business, but to allow local capacity to serve regional deployments across Southeast and greater Asia for large multinationals. As demands grow on local infrastructure, it remains to be seen if Singapore will lose workloads to developing lower cost markets, whether that be Jakarta, Kuala Lumpur, or elsewhere. The trade-off would be a loss in connectivity and available services, though if local capacity is unable to develop it may prove a needed shift. Despite this potential shift in future, for the time being Singapore will likely attract companies concerned about regional political issues, as Naver’s move from Hong Kong indicates. Anecdotal reports indicate that further moves for communications, media, and financial organizations are being mooted, suggesting a major opportunity for those few who are fortunate to have available capacity.

All in all another positive several months for Singapore, with the possibility of more good news ahead.

Sydney has continued its progression as a hyperscale cloud destination, with Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba all continuing their local market inroads in a bid for further market share. Each has been intrigued by the plethora of locally based mid- and large-size enterprises currently reviewing their IT strategy, along with the many government and educational organizations pursuing modernization initiatives from the NSW government and ATO on down. As each service signs up new clients…

Sydney has continued its progression as a hyperscale cloud destination, with Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba all continuing their local market inroads in a bid for further market share. Each has been intrigued by the plethora of locally based mid- and large-size enterprises currently reviewing their IT strategy, along with the many government and educational organizations pursuing modernization initiatives from the NSW government and ATO on down. As each service signs up new clients, the need for further local capacity continues to grow, leading to large-scale development.

AirTrunk is leading the way in large development, with SYD2 aiming for year-end completion and the second phase of SYD1 in serious planning. The developments support the company’s continued growth across Asia, with sites in Singapore, Hong Kong, and Tokyo all under construction. Fujitsu recently announced a further expansion to their Western Sydney site, with another 20 MW coming online early next year, and the Alpha DC Fund, NextDC, Macquarie, and Digital Realty are all working on new capacity.

The local investment acquisition market has stayed quiet to date in 2020, though anecdotal reports of investors looking for acquirable assets continue to circulate. Other assets throughout the country have traded hands, with the A$417 million sale-and-leaseback of Telstra’s Melbourne-area campus as the largest single-asset transaction to have been signed for this year. Assisted by an exceptionally rare 30-year lease term, the acquisition could show the potential for data centre deals with strong tenancy. All considered Sydney remains a strong and well-provisioned market which should continue well into the next couple of years.

Tokyo is rapidly becoming a regional hub for hyperscale deployments, as the xScale joint venture between Equinix and GIC nears first phase completion and development continues from the Digital Realty/Mitsubishi Corporation partnership on their latest site. These developments have…

Tokyo is rapidly becoming a regional hub for hyperscale deployments, as the xScale joint venture between Equinix and GIC nears first phase completion and development continues from the Digital Realty/Mitsubishi Corporation partnership on their latest site.

These developments have now been joined by AirTrunk, who confirmed their long-rumored entry to the market with the 60 MW first phase of their new 300 MW TOK1 campus to be operational by the end of 2021. This site thus has the potential to be the highest capacity campus locally at full build-out and serves as a major confirmation of both market potential and specifically the rapidly developing data centre cluster at Inzai. This focus on larger deployments is predicated on the continued digital transformation of large local corporations, with major cloud services such as Google and Alibaba making recent inroads and additional supporting applications gaining wider availability. All this leads to continued positive growth throughout the local ecosystem.

COVID-19 Driving Growing Demand for Data

Despite the ongoing geopolitical uncertainties and COVID-19 outbreak, activity in the Hong Kong data center market has remained red hot. In one of the largest leasing transactions this year, US-based data center REIT Digital Realty announced in early July that it agreed to lease a newly completed purpose-built data center at 11 Kin Chueng Street in Kwai Chung as the operator’s second facility in the city.

COVID-19 Driving Growing Demand for Data

Despite the ongoing geopolitical uncertainties and COVID-19 outbreak, activity in the Hong Kong data center market has remained red hot. In one of the largest leasing transactions this year, US-based data center REIT Digital Realty announced in early July that it agreed to lease a newly completed purpose-built data center at 11 Kin Chueng Street in Kwai Chung as the operator’s second facility in the city.

The third wave of the virus outbreak in Hong Kong saw MNCs suspending their back-to-office plans and requesting their staff to work from home. It is anticipated that even in the aftermath of the pandemic that many companies will continue to allow some level of remote working, which will in turn accelerate the pace of digital transformation of businesses in all aspects and lead to a surge in demand for cloud usage. Hong Kong’s impending introduction of 5G will also drive more usage of data, which in turn, will translate into increased demand for rack spaces in the city. Reflective of this, a handful of PRC and international operators remain on the active lookout for suitable leasing or investment opportunities in the city.

Japan’s economy passed over the business peak around the fall of 2018, entering a clear recession due to the consumption tax rate hike in the October 2019 and exacerbated by the impact of the spread of COVID-19 since February 2020. However, with May 2020 as the bottom, Japan’s economy is now headed toward recovery.

Amid the impacts of the spread of COVID-19, the for-sale/transaction market for real estate in Japan has already peaked. However, the balance of power between sellers and buyers in transactions has not shifted notably as of present, and the functions of a sound real estate transaction market have been maintained.

Looking at Japan’s real estate rental market, with June 2020 as the bottom, the market conditions of hotels and retail properties are heading toward recovery after an abrupt setback due to countermeasures against the spread of COVID-19.