Grace under pressure: Asia Pacific real estate market remains resilient despite uncertainties
The Asia Pacific real estate market has shown a considerable display of resilience to navigate through the impacts of COVID-19, supported by governments’ efforts to contain the spread of the pandemic and support the economy through stimulus programmes. Although these measures have helped prop up asset values, the industry is now bracing itself for a market correction, according to the 2021 Emerging Trends in Real Estate Asia Pacific report jointly published by the Urban Land Institute and PwC.
Valuers had been slow to write down asset values because of initial hopes for a rebound in the market in 2021. As recession bites, however, investors are anticipating asset prices to fall as we move into 2021. The downside for regional markets is not expected to be as severe as in Europe and the Americas, but three markets in particular have been identified as offering potential sources of stress, including:China, where a government-led liquidity squeeze is depr