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With the acceleration of digitalisation as well as changing consumer behaviour, it is imperative for retail tenants and landlords alike to adapt to the rapidly-evolving multiplatform retail scene to remain relevant, retaining the physical shopper catchment in shopping malls through an online presence. Malls should no longer purely be just a point of sale, but also extend towards being a focal point that incorporates meaningful and memorable experiences that are able to resonate with the varying consumer needs. This would make for an in-store shopping environment that is more enjoyable and appealing than just traditional brick-and-mortar shopping or mere e-commerce, as part of their placemaking strategy.
With Singapore in Phase Three of Re-Opening, increased footfall to retail spaces is expected with the relaxation of measures for gatherings and a majority of the workforce back to the workplace.
The recent slowdown in rental declines of prime retail spaces point to a potential bottoming out of rents by early 2021, and any rental reduction during the year is projected to be about 5%, barring lockdowns as a result of recurring community infections. Rentals of prime retail spaces located in Orchard might require a bit more time to recover and are expected to only return to pre-COVID-19 levels once mass vaccinations prove successful enough for the nation as well other key cities to relax travel restrictions.
Download the Report Read MoreMost property markets in the Asia Pacific region ended a challenging year on the path to recovery, thanks to strong performances by the office, industrial and logistics segments. In China, a combination of government policies and the ongoing e-commerce boom powered demand for business parks and warehouses. Hong Kong saw a jump in transactions after the government reduced stamp duty on the sale of commercial properties, while Singapore saw a surge in investment sales amid improving sentiment. The market outlook improved in Australia as the country bounced back quickly from a recession, while New Zealand continued to reap the benefits of its successful management of COVID-19. Vietnam, which also has managed to control the spread of COVID-19 and perform better than other Southeast Asian economies in 2020, is attracting the attention of a growing number of local and foreign investors, especially in the industrial and logistics sectors. Japan is another market where logistics assets are highly sought after, reflecting growing demand from the e-commerce sector. In Indonesia, the hard-hit hospitality sector saw a surge in interest from investors looking to acquire discounted hotel assets, while fast-growing Myanmar continued to draw interest in the logistics and affordable housing segments. The residential segment is also seen trending up in the Philippines, where remittances from overseas workers is driving demand. Overall, investors are expected to act quickly to make the most of a conducive environment as markets across the region emerge from lockdowns and economies regain momentum.
Download the Report Read MoreA Changed Landscape
The covid-19 pandemic will leave a lasting impression on the commercial real estate sector across Asia-Pacific. While it brought more pain to the already battered retail sector, it put more wind in the sails of the industrial sector via the flourishing e-commerce industry, as many business-to-customers (B2C) firms were forced to adapt quickly as lockdown and movement restrictions in many markets prompted a huge shift to inline retail activity. Much of these activity result in higher online retail sales growth and penetration across the region, regardless of market maturity.
This is evident when we look at the growth rate of online retail penetration across a few selected key markets across the Asia-Pacific with online penetration rates rising an average 14%year-on-year over 2020. We do not expect this growth to abate over the near-term and penetration rates should grow further, potentially reaching the regional leaders such as the Chinese Mainland and South Korea.
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Data Centers, once an afterthought for global enterprises, are now a cornerstone of the information economy, and well over $100 billion has poured into the asset class over the past decade, according to Cushman & Wakefield’s Global Data Center Market Comparison.
The Global Market Comparison is the first data center report of its kind, openly discussing and ranking top markets for site selection and investment. This study reveals the thought process that underpins all data center work on behalf of our clients at Cushman & Wakefield, providing a rigorous and analytical approach for maximum value.
This study evaluated 1,189 data centers around the world, utilizing a unique weighted methodology to rank 48 global markets and arrive at our Overall Top Ten External Link markets.
Download the Report Read MoreMarket turnaround: Recovery could deliver 50% uplift in global investment in 2021
Colliers anticipates a 50% surge in investment activity in the 2nd half of 2021 as global real estate markets rebound
With investors sitting on substantial amounts of dry powder and looking to make up for lost ground, Colliers expects total investment activity to increase by up to 50% in 2021. Our Global Investor survey results highlight that 98% of investors across all regions aim to expand their portfolios this year, with around 60% looking to expand by more than 10%, including 23% who want to expand by 20% or more.
Acquisitions to pick up pace in Q2 as market challenges ease
The roll out of COVID-19 vaccines will have a very positive impact on markets and global geo-political stability, courtesy of a Brexit trade deal and a U.S. election result, provide much needed certainty. These factors will help drive market growth in 2021. Although a large proportion of investors are looking to get out of the blocks early and identify acquisitions in Q1, Colliers experts believe the rebound in activity will gain strength from Q2 onwards due to lingering uncertainty over travel in the first quarter.
Tier-1 city offices remain the asset of choice
Reports of the ‘death of the office’ appear premature, with offices remaining the primary asset target globally. The scale and liquidity of the office sector in major commercial hubs like New York, London and Sydney allows investors to readily transact, supporting core, core-plus and value-add strategies. Re-positioning office assets to meet health, sustainability and technical benchmarks is a clear investor priority, delivering value for the long term.
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