Colliers’ Global Capital Markets 2021 Investor Outlook indicates that Asia-Pacific real estate investors will put money into offices this year over other markets.
The survey found that over half of respondents in Sydney and Melbourne, as well as 42% of Singapore’s respondents, see offices as a promising investment opportunity in the new year.
“In this uncertain environment, investors will prefer to deploy capital into lower risk opportunities,” said Terence Tang, a managing director at Colliers. “Tier one city offices remain the asset of choice.”
Despite remote working becoming mainstream last year due to the pandemic, these areas offer “more stable investments with less volatile income returns” according to Tang.
Tang added that offices with long leases and reliable tenants can remain resilient throughout the unpredictable global economy.
While some have claimed that the office is dead, Tang believes that the office industry still shows promise and is needed to continue nurturing collaborative opportunities.