Real estate transactions in Asia Pacific crossed $40 billion in the third quarter of 2021, up 12 percent year-on-year and roughly the same as in the third quarter of 2019.
Upbeat sentiment and the growing glut of undeployed capital are expected to provide a lifeline to the strong revival of Asia Pacific’s real estate markets next year, Urban Land Institute and PwC said in its 2022 «Emerging Trends in Real Estate Asia Pacific report,» published this week.
The deals pipeline in the region stands at $68 billion, more than double of what it was two years ago, the report said. Singapore, in particular, saw a strong rebound from Covid-hit 2020.
«Asia Pacific’s real estate market is seeing a new cycle of growth and investment as the region begins to shake off the challenges of the pandemic,» David Faulkner, president of ULI Asia Pacific, said in a statement.
Structural Changes
The report noted the prevalence of post-COVID-19 secular trends such as remote working, reduced travel and e-commerce, and said investors should consider how to take advantage of the opportunities that these changes present.
«For asset owners, a reimagining of outmoded assets and outdated spaces, whether it is from a sectoral, demographical or environmental perspective, may become a defining theme from next year onwards,» Faulkner said.
Investment Prospects
In terms of investment prospects, the report highlighted that 2022's top markets are expected to be Tokyo, Singapore, and Sydney due to their economic stability, market liquidity, as well as reliable cash flows.
Hong Kong also climbed off the bottom of the 22-city list to 14th, «fuelled by a general view that the worst has now passed for the city’s real estate markets.»
«Overall, the investment prospects in Singapore for value-add projects is expected to remain positive. There are also opportunities to take on development projects with the expected change in demand for space in a very liveable city-state,» Yeow Chee Keong, real estate and hospitality leader at PwC Singapore, said.
