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Asia Pacific Property Markets: Themes for 2021

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Colliers APAC Real Estate Market Outlook 2021 - Key Themes for Property Markets

Logistics & Industrial sector and technology occupiers lead 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

Download the report below. For more insights on this report, reach out to our Research experts Andrew Haskins, Joanne Henderson, Rakesh Kunhiraman and Chris Dibble.

Asia Pacific Property Markets: Themes for 2021

Download Report