Australia has been among the most successful nations in its government’s handling of the novel coronavirus cases on its shores, as well as in easing the impact on its real estate markets. In late May, Institutional Real Estate Asia Pacific senior editor Dr Jennifer Molloy spoke with four experts on Australia.
A key question is whether the experience of the pandemic and economic shutdowns will change the nature of urbanisation and real estate demand in the future. Asia’s relative success in containing the virus is likely to support urbanisation in Asia’s major cities in a post-COVID-19 environment.
The nondiscretionary retail space in Australia is an exception to the general gloomy sentiment directed at the retail sector. This is somewhat similar to the discretionary/nondiscretionary bifurcation in the United States, but distinguishing factors make the Australian retail proposition more compelling — and possibly unique in global retail.
When faced with an apparently bottomless chasm, it is natural to look down in fear of what might lie in its depths. The elegant suspension bridge that has been constructed to help you get across the chasm can be a source of wonder. But neither the chasm nor the bridge can tell you much about what the terrain will be like on the other side. And it is that new terrain real estate investors need to understand.
On 30 April, the China Securities Regulatory Commission and the National Development and Reform Commission jointly announced a pilot scheme to promote REITs in the infrastructure sector. The announcement marks a crucial step to utilise China REITs (C-REITs) as a mechanism for economic revival in the wake of the COVID-19 pandemic.
Roberto Versace, head of tactical real estate, Asia Pacific, at APG Asset Management Asia, discusses short- and medium-term risks to real estate markets as a result of the pandemic, as well as what institutional investors should keep in mind over the next few years.
Allianz Real Estate, acting on behalf of several Allianz companies, and Charter Hall Group’s managed wholesale fund CPIF have formed a 50-50 joint to acquire an Australian logistics portfolio of four ALDI distribution centres for A$648 million (US$448 million).