According to forecasts, the Asia-Pacific economy shall take a heavy toll in 2020. If the coronavirus is localized in the second half-year, and the next pandemic waves can be avoided, the region may recover up to 2021. Next to that, a high level of uncertainty still remains, so the tenants and the investors shall identify opportunities provided by the current situation, and take advantage of them.
The Roscongress Foundation presents the salient points of the publication accompanied by fragments of broadcasts of relevant panel discussions from the business programme of international events held by the Roscongress Foundation.
Market situation in the region is neutral, despite perturbations in the economy. Leasing activity and level of demand have stabilized in the majority of Asia-Pacific areas.
With lifting of restrictions, economic activity in the region started to show slight recovery. However, the most active sectors are still e-commerce, especially, in warehousing and logistics. This is true both for the new and current industry players.
According to poll held by KnightFrank in July, approximately 80% of analyzed markets show stable and gradually increased leasing activity. The company experts came to the same conclusion in May this year.
According to KnightFrank experts, the nearest future shall bring increase in demand of e-commerce players in industrial premises. Moreover, business leads include biomedical and pharmaceutical companies that lately witnessed increase in demand due to the COVID-19 outbreak.
Real estate markets show stable increase in activity that started to recover after gradual lifting of restrictions. However, recurrent coronavirus outbreak may reverse the situation.
Up to the sixth month after the COVID-19 outbreak the majority Asia-Pacific countries managed to contain coronavirus pandemic; and basically, the situation in the region improves. 75% of the markets analyzed by the authors, have shown stable or increased activity in terms of transactions volume. Many countries also demonstrate price increase at the end of July (compared to May).
The authors note that the situation was influenced by accumulation of deferred demand from March to May, as the buyers had no opportunity to settle transactions due to coronavirus restrictions. KnightFrank expertsadhere to an optimistic but cautious outlook for the real estate sector in the Asia-Pacific region providing for potential price decrease approximately by 5% this year.
For more information about construction as a sector with a sizeable share in many economies, rising level of digitalization, and shifts in consumer sentiment in real estate, please see the Building and construction,Housing and Utilities, Asia-Pacific region.