With the economy anticipated to recover, along with optimism regarding the COVID-19 vaccination coupled with the availability of dry powder and the pressure to deploy, the property investment market is poised for a pickup in 2021. The Melbourne-based developer Tim Gurner's $1 billion build-to-rent development fund aims to capitalise on a looming shortage of rental housing expected over the next three to four years, amid a flood of capital pouring into the nascent sector.
Meanwhile, the short-term outlook for the leasing market is more cautious. Although demand for warehouse space is expected to increase due to vaccine storage needs, office and retail renters are likely to stay prudent with spatial needs. In the commercial office segment, companies are also taking a wait-and-see approach to gain more clarity in the post-pandemic market and to assess what it means for their workplace strategy.
Read also: An Analysis of COVID-19’s Impact on Office Real Estate Demand
What caught out eyes this week?
Gurner Looks to Long-Holds Beyond Pandemic
Fresh from the launch of a $1 billion build-to-rent fund, developer Tim Gurner has a lot to be optimistic about. The Melbourne-based developer, who has completed upwards of 5,700 apartments and holds a $3 billion pipeline, launched the build-to-rent development fund amid a flood of capital pouring into the nascent sector.
Companies Take a Wait-and-See Approach to Leasing Office Space
As new ways of working force companies to reassess their office space needs, few are planning to move in the short-term. A growing number of corporates are opting to extend leases on their current locations until there is more clarity in the post-pandemic market. Others are pre-empting a future scramble for a new generation of workplaces, signing pre-let commitments for 2023 and beyond.
Moving Real Estate Forward: Four Keys To Success In The 'New Normal'
COVID-19 has been a great equaliser. Regardless of industry, it has affected just about every business in some way. Some have had to cut staff, amend their hours or rethink their whole business model. In order for the real estate industry to thrive in this changing landscape, these are the four keys to success in our "new normal".
Charter Hall, QuadReal Partner On Brisbane Office Towers
In a bid to remain “flexible” in uncertain times, Charter Hall has lodged two sets of plans for a significant river-front site in Brisbane’s fast-growing North Quarter precinct. The dual proposals feature a single commercial tower with 50,000 sqm of office space, or two smaller commercial towers comprising of 23,000 sqm and 36,000 sqm of office space, respectively.
Read also: Brisbane Riding on Cyclical and Structural Tailwinds
Singapore's Real Estate Market May Have Brighter Prospects in 2021
Singapore's economy was hit hard in 2020 as COVID-19 paralysed the world. Although Singapore's property market buckled under the stress, the damage was generally less than expected and just a fraction of that recorded during the Global Financial Crisis in 2008/9. Looking forward, 2021 could witness a strong year for the real estate sector.
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