The optimistic sentiment which characterized the first quarter was knocked back in the second by the regional spread of the delta variant and low vaccination rates in some jurisdictions. Investment volumes have held up remarkably well, however, with industrial again the go to asset class and the office and retail sectors posting a more varied performance across the region.
Simon Smith, Savills Research
Australia
“Australia is attracting further demand from offshore capital as the only G7 national which has recorded GDP growth relative to pre-pandemic levels.” – Sami Ayoub
China
“The office occupier market has roared back to life in the first half of the year, with tech and finance corporations signing a spate of major deals. Nevertheless, supply pipelines loom large in the commercial markets and investors are instead focusing on logistics and niche sectors.” – James Macdonald
Hong Kong
“In Hong Kong, challenges have emerged during the quarter, as the delta variant has spread regionally, and local vaccination rates have remained low. Investment markets are active, however, with industrial and retail assets attracting the lion’s share of attention.” – Simon Smith
India
“Despite the second wave and the resultant economic uncertainty, investors have displayed confidence in asset classes such as office and retail during Q2/2021. This was further reflected in 1H/2021 recording robust investment inflows, which were approximately 41% of 2020 full-year volume.” – Arvind Nandan
Indonesia
“While the market had shown steady growth after a rebound in the first quarter, the recent spike in daily covid cases, sparked by the spread of the new delta variant, has cast doubt over the strength of the recovery.” – Anton Sitorus
Japan
“The recently expedited rollout of vaccines is likely to hasten the opening of the economy, contributing to corporate activity levels, and more active leasing and sales markets.” – Tetsuya Kaneko
Malaysia
“The total value of major transactions in this review quarter doubled compared to Q2/2020, amounting to approximately RM2.14 billion. Township development sites contributed the most to the quarter’s overall transaction value, accounting for approximately 36%, followed by residential and industrial transactions at 20% and 19% respectively.” – Nabeel Hussain
Singapore
“The determined effort to restart our economy and re-open borders is expected to lift investment sales sharply.” – Alan Cheong
Korea
“Korea’s housing market prices are expected to remain strong given limited supply and a slew of new real estate policies.” – JoAnn Hong
Taiwan
“Demand for factories and industrial offices from the technology industry is strong. Even though the soft lockdown announced in mid-May might impact the property market, we have not yet seen a significant risk of price correction.” – Erin Ting
Thailand
“Logistics deals are driving Thailand’s investment market while other sectors have seen activity levels grind to a halt awaiting a post-COVID economic recovery.” – Jeremy O’Sullivan
Vietnam
“The Vietnamese real estate market has proved to be resilient despite the ongoing pandemic. FDI has remained strong, which has underpinned continued demand for real estate across all sectors, notably for centrally located office buildings, but also industrial and logistics assets, where demand continues to grow at a rapid pace.” – Troy Griffiths