Our experts discuss the rise of Shanghai’s biomedical industry, rising construction costs in India, the intensification of development in New Zealand, the burgeoning tech industry in Taiwan and the significance benchmarking plays in sustainability.
Markets to highlight this month:
China | Shanghai's Biomedical Center Of Excellence
Shanghai’s biomedical demand has surged, and core business parks have low vacancy and a scarcity of high-spec R&D space.
Colliers sees bright growth prospects for the biomedical industry, fueled in part by capital market financing. We expect Shanghai business parks, especially those with mature biomedical clusters and a sufficient biomedical talent base, to continue to be hotspots for biomedical occupiers and institutional investors. Considering the limited future supply in core business parks, developers and investors should maximize the value of their properties by working with occupiers to understand their special requirements and implement their development and renovation plans.
India | Rising Construction Costs To Push Real Estate Prices In 2022
Since 2021, developers have been experiencing increasing pressure due to the rising cost of raw materials owing to supply-side constraints.
The cost of key materials like cement and steel have risen over 20% yearly as of March 2022. These constitute a predominant share in the total cost of construction. Construction costs are up 10-12% YOY, with these surging costs likely to translate into increased real estate prices. So far, however, developers have been cautious about increasing prices as the market recovers from the aftermath of Covid.
New Zealand | Development Intensification Accelerating And Expanding
The National Policy Statement and Medium Density Residential Standards aim to compel councils to accelerate intensification of development.
The National Policy Statement on Urban Design (NPS-UD) and the introduction of Medium Density Residential Standards (MDRS) are the latest steps being taken by the government to compel councils, within New Zealand’s highest growth cities, to accelerate intensification of development.
Taiwan | Technology Drives Real Estate Demand
Over the next two years, we expect both purchase and lease demand from the technology industry to drive the market.
Since 2020, the tech industry has been the main driver of Taiwan’s economy. In addition to typical leases or purchases, tech companies are using diversified property acquisition strategies. Over the next two years, we expect both purchase and lease demand from the technology industry will drive the market. We recommend investors look for opportunities in tech clusters such as the Nangang, Neihu and Hsinchu areas. We also recommend developers and landlords upgrade their facilities and management services.
Singapore | Importance Of Sustainability Benchmarking
Our experts can help identify trends and translate insights into actionable steps to improve your building's sustainability.
Most businesses typically have a good sense of their performance in relation to their peers, but it is more difficult to know how you stack up in terms of sustainability. Here, it is important to engage professionals to unlock sustainability’s full potential. Colliers’ experts combine your data with a detailed understanding of sustainable asset management to identify meaningful trends and translate insights into actionable steps, allowing you to reach your sustainability goals.
The key takeaways in the infographic below reflect some of the main data points from each of the reports and articles profiled above
For recommendations and insights into commercial real estate opportunities in these markets, reach out to our experts Chris Dibble, Carlos Shen, Vimal Nadar, Derek Huang, David Berger.
View more of our expert thought leadership here, or visit our research library for past market insights across Asia Pacific.