2019 will be a year of significant change for the Asia Pacific real estate market.
Robust economic growth and an influx of capital have powered the Asia Pacific real estate market over the past decade. However, 2019 will bring an unprecedented set of challenges, including U.S-China trade conflict, financial sector instability and the rising cost of borrowing.
Now is the opportune time for occupiers and investors to refine their real estate strategies and build resilience to market volatility.
• Capital Markets: Investors should realise gains on early investments or rebalance portfolios through asset enhancement. CBRE also advises a stronger focus on structural investment opportunities.
• Office: Landlords and tenants continue to redefine the usage of office space, a trend that will accelerate the adoption of “Core x Flexi” strategy at the asset and portfolio level.
• Retail: Retailers will focus on improving the quality and performance of their store networks to align with the broader shift towards omnichannel strategies.
• Logistics: Tight space availability will oblige occupiers to embrace technology as a means to improve operational efficiency.