KUALA LUMPUR – ASEAN’s real estate sector is most likely to experience rise of new openings and occupier demand for leases in the second half of 2021 as economic activity starts to rebound and the demand for leases returns, according to speakers at Maybank Kim Eng’s Invest ASEAN 2021 webinar, ASEAN Real Estate: Path to Recovery on June 17.
In the new era of hybrid work/shop model that is currently being accelerated by the COVID-19 pandemic, user experience and wellness will have the opportunity to drive demand for high quality buildings that is able to feature flexible space, sustainability and technology for consumers.
“ASEAN real estate is returning to growth, with the surge in investment activity gaining traction on the back of the macro upturn. The trajectory remains uneven, as the effectiveness of domestic policies and pandemic containment measures will determine the course across geographies,” said Chua Su Tye, Head of Regional REITs Research, Maybank Kim Eng.
Additionally, according to Ada Choi, Head of Occupier Research, APAC and Head of Data Intelligence and Management, APAC at CBRE Research, investment enquiries for real estate assets are starting to gain momentum again, with bigger risk appetites shown by investors, particularly in Singapore, Hong Kong and Australia.
“We project that investment volumes for commercial real estate in Asia Pacific may rise by 10% this year, although still below pre-COVID levels. Logistics assets remain popular with the rise in e-commerce growth, while interest in offices and hotels are rising,” she added.
According to CBRE Research, Grade A office rental in Kuala Lumpur is expected to remain in a downward cycle, although this downturn is foreseen to be relatively limited. Ample incoming supply forecast in 2H 2021 will exert pressure that could further dampen recovery.