5 trends to shape the Asia - Pacific real estate industry

JLL's Asia Pacific capital market experts said that the real estate industry in Asia Pacific in 2019 will be shaped by 5 main trends including:

1. New residence needs replace traditional houses

The increasing number of urban population has continuously boosted the demand for new residence to replace traditional houses - houses attached to land, including dormitories, co-living, apartment buildings and nursing homes. From an investor's perspective, thanks to the optimization of space and the quality of building management services, the residential property flows are generating very attractive returns and long-term growth prospects, exceeding superior to traditional housing.

2. Flexible space explosion

Businesses continue to build a shared workspace as a way to enhance employee creativity and gain the upper hand in the fight for talent. The focus on employee experience promotes a growing number of flexible offices - including service offices and shared offices - across the region. By 2030, flexible workspace will account for 30% of the total commercial real estate portfolios of corporations worldwide. This means that unified missions will become more popular.

3. Logistics and data center services

The Asia Pacific region has been at the forefront of the e-commerce race, which has put pressure on businesses because they have to set up data centers as well as retail warehouses. Strong consumption rates are pushing investors to shift to data and logistics centers in Asia Pacific. These two areas will continue to expand with capital, targeting emerging markets such as China, India, Vietnam and Indonesia.

Flexible space models will be one of the industry trends

Asian real estate in the future. Artwork: JLL

4. Turning to debt investment

With the situation of tightening lending countries, banks have opened doors for non-bank lending organizations and foreign capital to immediately enter the market, especially in Australia, India and China. The result is a sharp increase in the number of investors turning to global debt investments, who offer flexible lending or funding for selected projects.

5. Smart city development trend

The smart city construction campaign is growing strongly in Singapore, Japan, Korea and Australia ... Proptech - the term of real estate and technology will play an important role in the development of cities. Future. Because smart cities have high demand for data, intelligent asset management and development allows for large-scale data collection and analysis - these two factors are important for cities. create a better living environment for the growing number of people.

Besides, JLL also considers the volume of Asia Pacific real estate investment in 2019 will still increase by 5%, although the growth momentum will slow down.

Stuart Crow, JLL's Asia Pacific Capital Market Manager, said that over the past ten years of the economic cycle, investors have been faced with macroeconomic risks and geographic uncertainty. politics such as interest rates rise, trade tensions escalate between the US and China, and tensions in the European Union caused by Brexit negotiations. Contrary to the economic picture, real estate continues to maintain its position as a safe investment channel, with the benefit of diversifying its portfolio and relatively high profits compared to other assets. However, at the end of the cycle, investors still consider carefully the divestment because the search for alternative investment assets with good investment performance is gradually becoming more difficult.

Dr. Megan Walters, JLL's Asia Pacific market research director, emphasized that in Asia Pacific, real estate demand will continue to be driven by demographics. The regional urban population is expected to exceed 400 million by 2027, while the 65 and older class will reach 146 million in the next 10 years. By 2021, the Asia Pacific e-commerce market is expected to hit a record of up to $ 1,600 billion.

Although there are many macro issues, the region's strong investment potential will help balance the risks, motivate investors and tenants to seek safe investment or industries that are less vulnerable. depends on the economic cycle.

Phuong Uyen

(According to Enternews.vn)