As the global economy begins to emerge from the depths of the pandemic, real estate markets across Asia-Pacific are poised for a strong recovery in 2021. In particular, the expected easing of border and travel restrictions this year should see investors return to key growth markets such as Hong Kong, Singapore and Sydney.
According to a recent report by global real estate services firm Cushman & Wakefield, total real estate investment volumes (excluding development sites) in Asia-Pacific are expected to bounce back in 2021 to around US$165 billion, or 90% of the level in 2019.
“This rebound in investment activity in the region is supported by greater investor confidence as Asia-Pacific leads the economic recovery across the world. The region is also riding on the positive momentum off the back of a surge in investments in the last quarter of 2020,” the report said.
In terms of asset classes, investors are expected to favor residential properties. Consultancy Knight Frank estimates 17 out of 22 prime markets in the residential segment will see stable to moderate price growth in 2021.
In Singapore, the residential market continues to be robust, with private condominium prices rising for the seventh straight month in February. Home buyers can look forward to high-profile luxury projects being launched in the city-state this year. One such development is the upcoming Park Nova in Singapore’s prime Orchard Road district.
The maiden project by Hong Kong-listed developer Shun Tak Holdings, Park Nova will include 51 luxurious units and three penthouses in a 21-story residential tower. The development, nestled amid a lush vertical garden, features a unique biophilic design.
In Hong Kong, the luxury development 8 Deep Water Bay Drive by Nan Fung Group also offers a premium green living experience to residents of the bustling metropolis. Nature is a key highlight of this development, with the surrounding greenery sculpted into multilevel green spaces within the grounds.
Meanwhile, office properties are another highly sought after asset class, especially those in prime locations. As companies adjust their office occupancy needs to take into account remote working arrangements, the office market should see some increase in momentum in the second half of this year, according to Cushman & Wakefield.
One upcoming prime office development that is catering to flexible working needs is CapitaSpring, located in the heart of Singapore’s Central Business District. The development features hybrid workplace solutions that offer fully integrated workspace options—including hot desks, meeting facilities, private offices and large enterprise suites—in one building. Tenants can maintain a core office for key operations and choose from a host of flexible workspace options when required.
After a subdued 2020, projects such as Park Nova, 8 Deep Water Bay and CapitaSpring are set to excite investors once again as real estate markets ride the global economic recovery in 2021.