Part 2 - Rent growth prospects In preferred property asset sectors
Part One of this report highlighted the good value of APAC real estate by comparing property yields with yields on bonds and equities. While property yields are mostly higher, they may not be sustainable because the COVID-19 recession may impact income from property assets.
However, in the office sector, for 2020 we only predict rent declines of over 10% in Hong Kong SAR and Manila. Medium-term office rent growth prospects remain bright in the more popular cities: Singapore should achieve five-year average annual growth of 3.3%, with Bangalore and Melbourne not far behind. With a yield of 3.9%, Singapore prime/Grade A offices look especially attractive.
Please contact Terence Tang for key trends and opportunities across Asia capital markets.