Most major regional economies continue to make steady progress after a devastating 2020 and ‘reform and recovery’ should emerge as the key themes of the year. While a smooth transition to normality is not assured (as India has shown) a pick-up in transactions volumes suggests a growing confidence among regional real estate investors as Asia continues to outpace both Europe and the US.
Simon Smith, Savills Research
Australia
Investor attention continues to shift towards the industrial and logistics sector, with market share doubling compared to the 12 months prior.
China
With the economic recovery and business resumption firmly established, China is looking to tackle new challenges, including tentatively restarting its financial de-risking program and improving sustainability while also investing heavily into the new economy, social services and energy/IT infrastructure.
Hong Kong
Hong Kong has begun to emerge from the pandemic as vaccination programs are wheeled out and the lettings and sales markets are showing early signs of recovery. China’s strong bounce back in the first quarter should help local business prospects once borders reopen.
India
Real estate recovery hinges on the progress of affordable housing programs, disinvestments in the public sector, REITs and overall infrastructure development. However, given a major second wave of infections, an immediate recovery suddenly looks much less assured.
Indonesia
Tax incentives and a relaxation of LTVs in early 2021 have boosted sentiment which has been reflected in a strong pick-up in residential sales. The development of new industrial estates has continued to thrive as Indonesia gears up to become a major production base in the ASEAN region.
Japan
Japan’s relative stability as well as its favourable funding conditions continue to attract international capital while more Japanese corporations are starting to dispose of corporate real estate leading to eagerly awaited investment opportunities.
Malaysia
The value of major transactions in the reviewed quarter amounted to approximately RM1.46 billion, a significant 53% year-on-year increase.
Singapore
The investment sales market is gearing up for an active year as the economy sets out on the road to recovery.
Korea
Even though long-term interest rates have increased, prices for core offices are still on the rise.
Taiwan
As low interest rates are driving up the housing market, the government has introduced several measures to cool the overheated property sector, aimed at reining in speculative transactions.
Thailand
The Industrial sector is leading investment activity, though FDI is unlikely to recover until local infections are controlled and borders re-open.
Vietnam
The domestic economy is growing strongly, together with healthy FDI. There are stock supply shortages across many asset classes which will hopefully be balanced by a slew of approvals from the new government.