Depending on the type of real estate, investors need a clear strategy to achieve strong and sustainable growth. The following key trends of the Asia-Pacific market should provide some pointers for investors in 2022.
Logistics: Developing new projects, renovating old projects
CBRE's survey shows that 78% of customers want to expand their logistics space in the period 2022 - 2024. They prefer to rent properties designed according to their own needs, cooperate with investors to develop completely new projects or buy land to build their own space.
To meet that demand, investors are aiming to upgrade old logistics properties to meet the increasingly strong rental demand, especially good-quality warehouse spaces near major traffic hubs. Some of the sub-markets in the region that are already stocked for the redevelopment are south of Seoul, Jiading and Minhang of Shanghai, Tokyo, Sydney, Melbourne and Brisbane.
Office: Buy back and upgrade projects in prime location
The prime location has helped many office buildings overcome the crisis period when the whole market weakened due to the pandemic. Therefore, investors should consider the opportunity to add value by upgrading office buildings in good locations to meet the needs of future tenants.
Capital market investors and can hold onto a property for the long term can also focus on markets that are in a strong recovery phase, such as Beijing, Shanghai and major Australian cities . These markets could start to experience mild rent growth in the second half of 2022, making it great for investors who can hold the property for five years.
Residential house: Apartment still on top
While Japan remains the main destination for the condominium market in the region, the built-to-rent housing market in Australia is attracting the attention of many organizations such as insurance companies and international pension funds. However, investors need to understand the legal barriers before doing the deal.
In Hong Kong, investors are looking to buy back hotels that are underperforming or abandoned due to Covid-19 to convert into houses in the context that the supply of houses here is extremely scarce and expensive.
Blue ocean strategies
First of all, the hotel industry should not be taken lightly. The slow return of international tourism has delayed the recovery of the hotel market. As a result, pent-up demand for leisure travel and public services will explode when borders reopen. Typically, there is an increase in investment in the Japanese and Australian markets in 2021.
Second, the retail space needs a second thought. Many retailers are still willing to open new stores or rent space in central areas to benefit from low rents. Specialty investors can take advantage of the opportunity to acquire properties in prime locations at bargain prices.
Top shopping malls in Japan, China, Singapore and Australia, as well as high-end retail districts in Hong Kong could present opportunities for investors. In particular, Australia is an extremely attractive market for investors interested in complex real estate including many items such as houses, offices, and retail. Meanwhile, secondary retail spaces in prime areas also offer good opportunities this year, especially in Tokyo, Seoul and Hong Kong.
0 Comments