, Singapore

Top 6 real estate trends to watch out for in 2021

Work-from-home will have a lasting impact, logistics will continue to thrive, and more.

The year 2020 was met with cautious optimism as Asia-Pacific property markets remained relatively healthy and the phase one trade deal was signed between the US and China. Then COVID-19 struck, throwing markets into turmoil, and with it, knocking many of our previous forecasts off-course.

This year has been dominated by the pandemic, with activity and performance of the various real estate asset classes linked to just how they have been impacted by the virus, says Knight Frank.

Geographies and property types have all been influenced by lockdowns, restrictions, and the ensuing economic weakness. However, as we now look towards 2021 and the potential recovery it may bring, here are six trends that give a sense of what lies ahead, according to Knight Frank:

1. Work-from-home experiment will leave a lasting impact

Corporates across most of Asia-Pacific are now re-examining what the new workplace will look like following an extended period of forced working from home. While some considerations are purely cost driven, corporates are undoubtedly thinking differently about how the workplace can effectively meet their employees’ needs.

Workplace strategy will vary across the region based on sector, market, and cultural nuances. On balance, we do not believe that working from anywhere will overwhelm the traditional office, although some elements of flexible working will become more mainstream.

2. Logistics driven by e-commerce and supply chain security

The industrial and logistics markets across Asia-Pacific have been a bright spot in 2020, with our forecasts both in the occupier and investment market pointing to a repeat in 2021. The growing adoption of 5G, enhanced by IoT devices, will help drive efficiencies, attracting more customers online while offering a host of new functions to logistics companies.

Meanwhile, increased concerns around supply chain resilience and manufacturing security will continue to drive activity around the region with certain sectors such as biomedical shifting from ‘just in time’ to ‘just in case’.

3. Investors circling for distress may be disappointed

While there have been some commercial assets traded at a modest discount in recent months, the optimistic view of a recovery in 2021 means that those looking for a bargain may have to move up the risk curve to find distress. With more uncertainty around the road to recovery back to pre-COVID levels, sectors such as hospitality and retail will be where these opportunities will lie.

4. Monetary policy to remain supportive of residential markets

Residential markets have surprised many on the upside especially in markets like Singapore and Hong Kong SAR where new launches continue to see healthy demand; despite weakening economic conditions.

With low interest rates and policy makers unlikely to dampen buoyant markets, we expect 2021 to continue to be a positive year for most of the region’s markets.

5. Real estate to contribute to the ‘Green Recovery’

China’s plan to go carbon-neutral by 2060 is a major statement that will impact real estate. With the built environment responsible for up to 40% of carbon emissions, expect it and others to increasingly look at decarbonising real estate through legislation and standards.

Developers, end-users and creditors who are all placing a greater emphasis on Environment, Social, and Governance (ESG) and sustainability will place going green higher on the agenda.

6. US-China relations to continue to be important for the region

Behind the rhetoric, bilateral US-China investment and trade continues to be of huge significance to both countries and the region.

While the President-elect may utilise different tactics, such as re-engaging with multilateral institutions and agreements, the broad US policy of being tough on China is likely to continue. If the change in tactics leads to a slight thawing of tensions, this could reduce uncertainty and boost sentiment domestically and throughout Asia-Pacific.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Realestate Asia in your inbox

Taiwan commercial transaction volumes hit record highs in Q1

Total volumes surged 241% to USD1.5b during the quarter.

Are Thai property buyers finally ditching the ‘wait and see’ approach?

They are beginning to establish acquisition strategies for this year.

Don’t be fooled by Singapore retail sector’s improving demand indicators 

The sector’s recovery won’t start until 2022.

Philippine residential prices to inch up 1.5% in 2022

The pace of growth will likely hinge on a rebound in office leasing. 

APAC data centre demand to double in 3-5 years

Singapore, Hong Kong, Mumbai, Sydney, Seoul and Tokyo are promising markets, says Knight Frank.

Japan’s property investment market unfazed by ongoing lockdowns

There were 18 en-bloc transactions with a combined value of USD2.3b in Q1 2021.

Indonesian property sector to get a boost from these government incentives

These include a waiver of the 10% VAT on property sales under IDR2 billion.

These 3 properties bolstered Singapore’s impressive home sales in Q1

Over 42% of the 3,376 units sold during the quarter were from these properties.  

Korean office transaction volumes hit USD2.1b in Q1

There were 7 en-bloc transactions closed during the quarter.

Here’s why Melbourne’s office market will see more activity in Q2

Colliers expects increased market activity across assets higher up the risk curve. 

Contact me about the awards