Work-from-home measures will have a lasting impact on office spaces in the Asia Pacific, according to a Knight Frank report, which expects elements of hybrid working options to enter the mainstream.
Prime office rental in the Asia Pacific fell 4 percent year-on-year while vacant climbed significantly from 1.8 percent to 12.6 percent, according to the report on the 2021 real estate outlook for the region.
This is due in no small part to the lasting impact of work-from-home measures triggered by the coronavirus pandemic.
«The Great Disruption»
«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,» according to Knight Frank's 2021 real estate outlook for the region.
Indeed, in the case of the financial sector, some are pursuing a path of permanent office conversion such as Standard Chartered, which is seeking to offer work-from-home options to around 90 percent of its workforce by 2023. UBS has explored even more futuristic setups such as virtual reality-based traders.
«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.»
Lasting Traditions
As a whole, prime office rental recovery is expected to be slow in 2021, especially in core markets like Hong Kong and Singapore, with a continued decline of up to 3 percent, according to Knight Frank.
Yet while work-from-home and other remote working conditions could be here to stay, the real estate firm believes that this is also the case for conventional offices.
«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,» the report said.
