Industrial real estate and logistics will recover rapidly by 2021
According to CBRE’s Asia-Pacific Real Estate Outlook Report, most of the real estate market segments will begin to recover from 2021.
Although social dislocations and travel restrictions have eased in most parts of the Asia-Pacific, recovery of economic activity and real estate markets Productivity is generally uneven across countries.
According to the Index measuring the level of recovery of countries assessed by CBRE based on economic activity, transportation, shopping, entertainment, tourism and work; New Zealand, China, Taiwan and Vietnam are leading.
CBRE expects the Industrial and Logistics markets to recover quickly from the economic downturn caused by the disease. The stimulus will come from the development of the e-commerce segment.
For the industrial and logistics segments, rental demand is still active as e-commerce companies are growing at a skyrocketing rate. The retail and hotel segment will continue to face many difficulties but still have great recovery potential.
In terms of investment markets, regional institutional investors are looking for opportunities in the logistics sector through joint ventures or / and capital investment. Some foreign institutional investors are strategically investing in office assets in prime locations in the gateway cities of Japan, China and Singapore.
In this economic crisis, interest rates will be kept at the lowest level to help stimulate demand for commercial real estate markets in the Asia-Pacific region in the context of the difference between investment rates in real estate Government bonds and assets are growing.
Investors are still very interested in commercial real estate despite restrictions on movement and they are also accessing other investment opportunities such as debt, stable revenue assets and public development land. industry