Capital Markets

Inflation across the world has reached multi-year highs, driven by a confluence of demand and cost factors. Given Singapore’s small open economy as well as dependence on energy and food imports, the city-state's overall inflation has picked up, rising to 5.4% yoy in March 2022, a decade high.

This report explores the implications of high inflation for real estate, and presents key strategies for owners, investors and occupiers to forge ahead in the inflationary environment. 

The Colliers Quarterly Reports for Q1 2022 reported that market uncertainties delay decision making and curtail transaction volume ahead of expected H2 recovery. Total investment volume slowed down along with the more stringent social-distancing rules in place since late January. Looking ahead, Colliers expects the investment market to remain slow in Q2 but believes market momentum and activities will likely improve in H2 2022. Office space demand weakened in Q1 2022, largely due to inspection activities being held up, resulted in the overall vacancy rate climbed slightly to 10.9% in the quarter.

Supply chains and more specifically, the disruption of supply chains have never been more in the spotlight than since the onset of the COVID-19 pandemic. Supply chain teams around the world have been called upon to rapidly adapt to volatile conditions as lockdowns swept across the globe causing scarcity of product, which has also been subsequently compounded by acute bottlenecks.

The redesign of supply chain and logistics networks in light of geopolitical, technological, demographic and urbanisation trends has been especially prevalent over recent years to optimise the combination of supplier, manufacturing, inventory, storage, and distribution flows to meet the needs of customers in the most cost-effective way.

This report, The Role of Asia Pacific in Global Supply Chains External Link, is the first in a series by Cushman & Wakefield focussing on the impacts of disruption, customer buying behaviour and the underlying megatrends on the design of supply chain and logistics networks.

This report was originally published in https://www.cushmanwakefield.com/en/insights/the-role-of-asia-pacific-in-global-supply-chains

Cushman & Wakefield’s 2022 Signal Report shows that recovery in all regions and sectors of the global real estate market will hit a new record in 2022. In this global report, our Global Head of Capital Markets Insights and Head of Investment Strategy for EMEA Capital Markets provide a quarter-by-quarter guide to investments in Commercial Real Estate (CRE) in 2022.