REIT ASIAPAC
Source : As of December 29 , 2021 ; January 31 , 2022 ; February 28 , 2022 ; March 31 , 2022 Indices referenced .
The outlook for rental growth is positive , and the path of returning to pre-pandemic levels is evident .
Sectoral And Market Views
We believe the following trends to be more pronounced within the real estate sector :
3 . The search for safe-haven markets : Heightened concerns about rising geopolitical risks and the unexpected sanctions from sovereign states have led to a search for safe assets . We believe REITs from markets with safe-haven statuses , such as Australia and Singapore , are likely to benefit from such trends . Continuing capital inflows will help boost real estate valuations in these markets .
1 . Rising office rents : We believe that office rent in most markets will see a post-pandemic rebound as workers return to offices . We expect most corporations to adopt a hybrid work model , combining working from home and office . We should see the return of some corporate employees to central business district ( CBD ) offices . Non-CBD offices , adapted for hybrid work will be in demand due to lower occupancy costs and transportation costs for employees .
2 . Demand for logistics properties : We expect demand for logistics properties to stay strong amid ongoing deglobalisation trends and the emphasis on supply chain security . Domestically , countries are likely to develop logistics that adapt to demand to re-localise operations and networks . The demand for logistic properties has already been rising due to e-commerce during Covid , and this trend will continue .
ABOUT THE AUTHOR
Patrick Ma , CFA has served as Admiral ’ s Research Director since 2016 and subsequently Admiral ’ s Director , Listed Products and Research . Patrick is responsible for the investment research that backs all of Admiral ’ s investment advices and management activities . He is also responsible for Admiral ’ s products in the listed space . Patrick has over 20 years of experience in the securities markets .
10