News

The average prime yield midpoint in Melbourne compressed by 25 bps in 4Q20.

Capital values in Ho Chi Minh City hit USD 7,621 per sqm, reflecting investors’ optimism.

Canberra owes its long-term resilience to these 2 factors.

Office demand is expected to improve gradually this year.

Blame it on a lack of new launches during the month.

More diverse range of work options, such as repurposed workplaces and better-equipped home offices, could be part of the new normal.

With a younger tenant mix, demand for more efficient spaces and flexible lease terms is now higher than before.

Meanwhile, prime high street rents contracted -1.0%.

Blame it on the high vacancy rates. Mass projects launched were generally well received during the quarter, owing to robust pent-up demand. For example, all the 769 units and over 95% of the 1,391 units launched at Pavilia Farm (Phase 1 & Phase 2 respectively) were sold. The project sits atop Tai Wai Station and is jointly developed by New World Development and MTRC. According to JLL, with uncertainty in the economic outlook and the fact that rental markets are typically slower towards year-end, leasing activity was quiet. The situation appeared to be more notable in the high-end segment as landlords were more willing to soften asking rents to attract tenants. Up to 4,800 private supply units in 1Q21 A total of 111 luxury units are expected to have received their occupation permits in 4Q20. Notable projects include 21 Borrett Road (Phase 2) by CK Asset in Mid-levels (50 units) and Grand Homm by Goldin Financial (18 unit) in Ho Man Tin. The government has earmarked three residential sites for sale by tender in 1Q21, including one each at The Peak, Kwun Tung and Kai Tak, capable of yielding 2,240 flats in total. Together with the supply from Package 6 of the Wong Chuk Hang Station project, and private development and redevelopment sources, land supply for private housing from the quarter is estimated to reach 4,800 units. Luxury capital values decline against weak demand With demand for luxury properties staying weak, more owners were willing to reduce prices, resulting in a drop of -2.4% q-o-q in luxury capital values in 4Q20, after dropping by a similar magnitude (-2.5%) in the previous quarter. In 2020, luxury capital values dropped -8.2% y-o-y in total. Amid the holiday season and limited expatriate arrivals, leasing momentum remained weak in 4Q20, with luxury rents falling by -3.8% q-o-q, after a -3.6% q-o-q drop in 3Q20. Outlook: Drop in capital values to slow amid low interest rate A potentially less tumultuous year in 2021 and the low interest rate environment are expected to support housing demand, especially in the mass segment. We expect transaction volume for luxury properties to pick up mildly, though still remain much lower than historic levels. Given a high vacancy level, luxury capital values are still expected to remain soft, dropping in the range of 5-10% in 2021. In view of ongoing border shutdown and corporates’ focus on cost saving, expat arrivals are likely to remain low and with their housing budgets tight in the near term. Luxury rents are expected to drop by 5-10% in 2021, in line with capital values.

It also reached out to displaced jeepney and tricycle drivers to facilitate delivery of orders to far-flung locations in the Philippines.

The 1.4% dip in warehouse leasing volume was outweighed by the increases in single- and multiple-user factories.

Inner city areas have higher vacancies, whilst those in outer ring suburbs remain low and rents for houses are growing.

Capital values in 4Q20 increased 10% yoy to PHP 269,932 per sqm.

Environmental, social, governance demands are mounting in all real estate assets groups.

Electrification is a crucial step to decarbonise the sector.

Analysts expect prices to increase by 5.5% but there is a high chance of overshooting.