What’s in store for
Asia Pacific real estates in 2022?
Harnessing Growth, Navigating Uncertainty
Economy
Office
Retail
Investment
The prolonged pandemic
Emergence of new
COVID-19 variants set to further delay economic and border reopening
Mitigate rate hike impact
Review refinancing terms and lock-in low-rate loans
The Strategy
Hybrid working and productivity
Companies to evaluate systems and policies to effectively manage hybrid working
The Uncertainty
End of downward rental cycle
Upgraded forecast for Singapore; Shanghai, Beijing, Sydney and Melbourne
to turn around
Shift in shopping patterns
Pandemic-related restrictions and closed borders continue to cloud outlook
A slow recovery
Delayed rental rebound in Australian CBDs; downgraded growth for Hong Kong SAR
Sustainability of demand
Rapid pandemic-driven expansion of recent years set to normalise
Positive rental outlook
Higher supply in selected markets unlikely to derail rental growth in 2022
Logistics
The Uncertainty
Maintaining
investment returns
Investors to adapt to tight yields and interest rate uncertainty by adopting higher risk strategies
Milder yield compression
Interest rate hikes insufficient to erode yield spread
Laggards become leaders
India and Southeast Asia economies to drive economic growth; limited inflationary pressure
The Growth
Economy
The Growth
Korea
+2.1%
Hong Kong SAR
+3.8%
Singapore
+3.0%
Source: CBRE Research, January 2022.
+3.1%
Japan
+4.9%
Mainland China
+3.6%
Australia
Economy
+7.7%
India
+3.6%
New Zealand
GDP Growth in 2022
Office
Plan early for lease expiries
Secure prime space before market recovers, particularly in locations with limited new supply
The Strategy
Office
Rental Growth Leaders in 2022
Melbourne
Seoul
Singapore
1
3
2
Beijing
3
+7.5%
Hong Kong SAR
2
+5.0%
Singapore
1
Upgrade to modern & customised assets
Partner with developers for build-to-suit opportunities
The Strategy
Logistics
Logistics
The Growth
The Uncertainty
The Growth
Retail
The Uncertainty
+2.2%
Shanghai
3
+2.5%
Hong Kong SAR
2
+3.0%
Shenzhen
1
Evaluate upgrading opportunities
Take advantage of tenant-favoured markets to source well-located stores
The Strategy
Retail
The Uncertainty
The Growth
Investment
Consider asset enhancement
Capitalise on opportunities arising from price dislocation in office, retail and hotel sectors
The Strategy
Investment
Office and business park
Shanghai
3
Grade B office, retail & multifamily
Tokyo
2
Office and hotel
Singapore
1
+5.2%
+6.9%
+2.8%
+2.0%
Source: CBRE Research, January 2022.
Source: CBRE Research, January 2022.
Rental Growth Leaders in 2022
Source: CBRE Research, January 2022.
Rental Growth Leaders in 2022
Source: CBRE Research, January 2022.
Top Market for
Cross-border Investment