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Asia Pacific Property Markets: Themes for 2021

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Logistics & Industrial sector and technology occupiers leading the way

This report details prospects for the office and logistics/industrial sectors across the region in the light of likely recovery.

Colliers' experts also outline four of the key themes that Colliers expects to drive APAC property markets over 2021 – China Plus One strategy, technology occupiers, flexible workspace, and sustainability – and assess their implications for property occupiers and owners.

 

Key Forecasts & Outlook for Office Markets:
  • We expect aggregate leasing demand to rise 96% from last year’s weak level, but see new supply at 1.6x demand, which should depress rents by 6.1%

  • Rising vacancy should peak at about 15% at year-end 2023

  • High vacancy will be concentrated in China and India; vacancy will be lower in popular occupier locations like Sydney, Melbourne and Singapore

  • Most APAC office markets should favour tenants over the next year

  • Offices remain popular with investors; however, with demand and supply out of balance in many cities, office prices are unlikely to rise in the near term
Key Forecasts & Outlook for Logistics & Industrial:
  • The shift from physical to online retail has driven demand for logistics space, and COVID-19 has boosted e-commerce volumes

  • Expansion in cold chain, new warehouse designs and new infrastructure projects should fuel demand further

  • Most APAC markets now favour landlords

  • Rents should pick up in the big Chinese cities in 2021, with 3.0% growth in Shanghai

  • Higher incentives had made Sydney and Melbourne favour tenants, but with firm demand effective rents should rise 1.0-2.5% this year

  • Cap rates for Chinese logistics assets could fall below office cap rates within a few years

 

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Asia Pacific Property Markets: Themes for 2021

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Chris Dibble

National Director | Colliers Partnerships, Research & Communications

Auckland

Chris Dibble oversees three key business units at Colliers New Zealand - Colliers Partnerships, Research and Communications.

Colliers Partnership priorities focus on support initiatives that drive collaboration, best practice learning, cost efficiencies, and growth opportunities across the wider Colliers franchise network.

As the head of research for Colliers, Chris oversees the collaboration and delivery of award-winning research reports. He is a regular presenter and market commentator, often discussing the latest insights on current and future property trends.

Chris also leads  PR and communications for Colliers. He works with in-house and external writers to curate an audience-focused content delivery strategy. 

With over 15 years of experience and university qualifications in economics, geography, marketing and property, Chris provides a multi-disciplinary approach that assists a broad range of clients and internal stakeholders.

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Ian Little

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Richard Kirke

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Greg Goldfinch

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