NAVIGATING THE POST-PANDEMIC RECOVERY

After a challenging first half of 2020 with the pandemic reaching its peak and leaving a trail of battered economies in its wake across Asia-Pacific, things took a turn for the better towards the end of 2020 as many countries started to keep the outbreaks under control and cautiously reopen their economies. Yields across the region kept mostly stable supported by the low interest rate environment and available liquidity. As a result, real estate asset values across the region showed signs of recovery with more markets reporting asset price appreciation across certain sectors in H2 2020.

This can be seen in the office sector where only 12 of the 22 markets we track recorded asset value declines, down from 13 in H1. Furthermore, optimism surrounding asset values for the region has improved with 7 markets expecting values to decline over the coming six months, down from 11 back in H1.

Lastly, the pandemic has also brought about a shift in the way we see and use real estate via changing consumption patterns and occupiers reviewing their corporate real estate strategies; all of which have technology as a central driving force. In doing so, this shift to incorporate more technology into real estate will also act as a support in preserving real estate asset values.