A delicious dish of Asian-Pacific real estate investor in 2021?


“Delicious food” that attracts real estate investors in Asia – Pacific

The year 2021 will see the rise of office real estate when more than 30% of investors surveyed by Colliers International want to invest in one segment more than another.

Singapore is considered a stable office investment market with less volatile profits and high quality assets. Photo: AFP

The 2021 global capital market investment outlook report recently released by the multinational investment management company Colliers International (based in Canada) said that more than half of the investors surveyed in Sydney and Melbourne, Australia said they are interested in the opportunity to invest in office real estate in 2021, while in Singapore, up to 42% of investors surveyed choose to invest in this segment.

This trend seems to be the opposite of the office real estate market in 2020 when the form of work from home becomes popular during the anti-epidemic Covid-19 period and the new normal state.

“In a climate of uncertainty, investors will choose to invest in less risky investment opportunities,” said Terence Tang, an executive director at Colliers. “The city level 1 office market is still the preferred option,” he added.

Cities like Sydney, Australia’s Melbourne or Singapore island nation are considered to be stable investment markets with low volatility returns and high quality assets. Expert Terence Tang assessed, office real estate has a long lease term and if there is a high file of tenants, this segment can still escape the impact of the uncertainty of the world economy.

Still know, some investors believe that Covid-19 and remote work will “kill” traditional offices. “If you believe the office is a place to live and you are going to invest in good quality office properties, these assets help secure income during uncertainty. I think this is what everyone is concerned with. mind, “Mr. Tang stressed.

Last year, Morgan Stanley Investment Bank (USA) predicted that office tenants in Asia could give up 3-9% of office space. But Mr. Tang assessed, it will be too hasty to say that the office real estate is less profitable and leave this investment segment.

In many parts of Asia and the Pacific, long-term working from home is not well received by workers. “Especially in Asia where apartment sizes are often small, when both husband and wife work together in the apartment, they try to communicate through laptop computers, but this is ineffective and lethargic. medium, “said Mr. Tang. Therefore, the office will still be an attractive segment for investment capital because the need to build and develop corporate culture is constantly increasing.

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