SINGAPORE — Actual property buyers in Asia-Pacific are more than likely to place cash into workplaces in 2021, with 31% of respondents selecting the sector over different market segments in a current survey.
That is regardless of enormous adjustments to workplaces following the coronavirus pandemic, resembling work-from-home arrangements becoming the norm last year.
Greater than half of the respondents in Sydney and Melbourne mentioned they like workplaces as an funding alternative this yr, together with 42% of Singapore’s survey respondents, in keeping with property funding agency Colliers Worldwide’s Global Capital Markets 2021 Investor Outlook.
“On this unsure setting, buyers will favor to deploy capital into decrease danger alternatives,” mentioned Terence Tang, a managing director at Colliers. “Tier one metropolis workplaces stay the asset of alternative,” he added.
Cities resembling Sydney, Melbourne and Singapore supply “extra steady investments with much less risky earnings returns” and top quality property, he instructed CNBC’s “Street Signs Asia” on Tuesday.
An aerial view of Sixty Martin Place, Sydney, Australia.
Mark Syke | View Footage | Common Photos Group | Getty Photos
Moreover, workplaces which have lengthy leases and tenants with “sturdy credentials” can in all probability experience out the unpredictability within the world financial system, Tang mentioned.
“In case you consider that the workplace is right here to remain and … you put money into good workplace property which provide you with that safety of earnings over this unsure time period, I believe that is one thing that folks like,” he mentioned.
However he acknowledged that some assume Covid-19 and distant working will deliver in regards to the “demise of workplaces.”
Tang mentioned it could be “untimely” to jot down off workplaces.
“There’s rising confidence that this asset class remains to be very related,” he mentioned, including that for a lot of within the area, working from house for the long run will not be ultimate.
“Particularly in Asia the place the properties are smaller, when you might have a husband and spouse in an condominium, they usually’re making an attempt to speak on their laptops … it isn’t as conducive they usually cannot focus,” he mentioned.
Places of work are additionally nonetheless “very a lot wanted for collaboration and growth of company tradition,” he mentioned.
— CNBC’s Weizhen Tan contributed to this report.