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Employers continue to put employee experience at centrestage in how office space is utilised whilst also ensuring the wellbeing of workers and incorporating ESG standards in the design. Modern workplaces will see variations of hybrid fit-out, either simple or complex.
The architecture industry has become integrated, from how architects design structures down to the way firms are transforming themselves. Professionals are now expected to be experts not only in design but also in the completion of projects.
Flexible work adoption is slower in the Asia Pacific due to lower levels of managerial trust. Paul Seow, Associate Director, Asia Pacific Total Workplace, said that now is the perfect time to reconcile the gap between the executors on the ground and the C-suites. Read the exclusive interview on page 22.
Get to know the top industry players in the Asia Pacific at the Real Estate Asia Awards. The prestigious awards programme pays tribute to real estate businesses surpassing unforeseen circumstances and producing honourable innovations that stood out in the property market. For the full event coverage, go to page 42.
Read on and enjoy!
Anshul Jain, Managing Director for India and South East Asia of Cushman & Wakefield, spoke with Real Estate Asia Editor-in-Chief Tim Charlton and touched upon what this shift in the mix of clients mean for the industry, whilst discussing the latest trends and outlook for real estate in the region.
3 APAC countries that will benefit the most from the global supply chain
Several changes in the economic and business environment have made China relatively less attractive for margin sensitive manufacturers, Savills reported. Amidst this global supply chain restructuring, analysts say ASEAN countries, notably Vietnam, have benefitted the most within APAC.
What you should know about virtual real estate in the metaverse
Real estate developers seem to have found their next target location: the metaverse—a space which has proven itself to be profitable with parcels netting an average price of $16,258 (US$12,000). A total of 268,645 parcels are up for grabs across the 4 metaverse platforms.
10 major trends in APAC life sciences real estate
The life sciences sector has been in the spotlight in recent years due to the COVID-19 pandemic. Whilst companies in this sector are primed for significant growth for the foreseeable future, JLL says having access to the right real estate will play a critical role in unlocking growth opportunities for the sector.
APAC to sustain growth in commercial real estate investment in 2022: CBRE
Whilst 2021 is not the year everyone expected it to be, the real estate industry in the Asia Pacific was surprised by the rebound it saw, especially in the commercial investment market. This momentum is even projected to be sustained going to 2022 with a 5% to 10% forecasted growth, which the CBRE calls a “historical high.”
Capital raised by REITs could top $20b in the Asia Pacific in 2022: APREA
2021 has been a remarkable year for Asia Pacific REITs in terms of listings and acquisitions. This trend is expected to continue and 2022 will be another year to look forward to as the sector gains traction with investors. Last year, there were about 30 newly listed REITs in the Asia Pacific which raised over $12b in capital.
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Why tech giants want office space and what it means for real estateCOMMERCIAL OFFICE INDUSTRIAL
Building on the removal of mobility restrictions in the previous quarter, a Knight Frank report says prime rents of retail space remained on an upward trend in Q3 2022 across all regions in Singapore.
The average island-wide gross rental increased 1.5% q-o-q to S$25.60 psf pm, as retail spending continued to be driven by employees returning to the workplace and the burgeoning inflow of tourists.
Here’s more from Knight Frank: After a two-year hiatus, leisure and entertainment activities are back with the lifting of curbs. The re-emergence of live music in F&B venues as well as carnivals and bazaars lined up along the streets were welcomed and patronised by many, promoting retailers and entertainment venues in tourist hotspots such as Clarke Quay and Orchard Road, as well as in other locales such as the all-day Central Beach Bazaar at Sentosa, the Carnival by the Bay at Marina Bay, and the outdoor cinema event Films At The Fort in Fort Canning.
Additionally, the pace of meetings, incentives, conventions and exhibitions (MICE) events held in Singapore surged without restrictions on group sizes, event capacity limits or zoning requirements. With the nation hosting the Formula One (F1) race, the Singapore Tourism Board (STB) reported that a series of MICE events were scheduled
to coincide with the Grand Prix, with the total volume amounting to levels similar to that of the pre-Covid days.
With this year’s F1 setting a new record for the highest attendance in the race’s 13-year history, entertainment, lifestyle and F&B outlets benefitted from the slew of shoppers and diners providing a much-needed shot-inthe-arm, after the two years of pandemic.
Retail sales rose by 17.5% to a combined S$6.8 billion in July and August 2022 when compared to the same period a year ago (Exhibit 2). Not counting February 2022, monthly retail sales since November 2021 were above the average sales level of about S$3.2 billion reported throughout prepandemic 2019.
Demand from locals as well as the return of tourists generated a resurgence of retail sales activity in Q3. International visitor arrivals (IVA) continued to increase, totalling some 3.7 million from January to September 2022, with the highest volume to-date of 2.2 million recorded in Q3 compared to the 246,145 and 1.3 million in Q1 and Q2 2022 respectively.
As such, the retail sales index (RSI) (excluding motor vehicles) maintained uninterrupted y-o-y growth for six consecutive months, with the latest month of August 2022 registering an index of 101.8, a 13.0% increase from 90.1 in the same month last year. This was primarily attributed by Wearing Apparel & Footwear, Food & Alcohol, and Department Stores industries which reported at least a 35.0% y-o-y growth during the month as shoppers returned to stores and malls in revenge spending sprees. Without disruptions from mobility restrictions, the retail sector has been steadily improving month after month.
Out with the old, in with the new As Singapore normalises and adjusts to life after the pandemic, the retail market continues to evolve, with the pace of change accelerating each month. Department stores have lost their dominance in malls giving way to more diverse themed lifestyle stores catering to a broad range of households. Brands such as Daiso, Don Don Donki, Decathlon as well as Muji, are notable examples that are quickly establishing pre-eminence in malls with the ability to attract a wide spectrum of consumers. Demand for such stores will drive expansion plans of these key players in Singapore over the next few years.
In addition to the online retail channels that grew out of the pandemic, brick-andmortar stores need to step up its experiential element to engage consumers with sensory touchpoints that cannot be duplicated through digital platforms or traditional shopping. Such transformations in mall retailing models place greater importance on the types of anchors that are able to curate the experiences necessary for mall owners to remain relevant in an ever changing retail landscape.
Key events such as the 11.11 Sale, Black Friday, Christmas, as well as New Year’s Eve will boost and support retail spending in the final lap of the year. Stable and healthy growth in tourist arrivals and Singapore seemingly able to return to pre-pandemic normalcy point to sustainable recovery for the retail market, and prime retail rents are on course to grow by the earlier projection of 2% to 4% for the whole of 2022. However, uncertainties loom with inflationary pressures on the economy which may threaten market stability.
With this year’s F1 setting a new record for the highest attendance in its 13-year history, entertainment, lifestyle, and F&B outlets benefitted from the slew of shoppers and diners providing a much-needed shot-in-the-armSINGAPORE
As one of the largest contributors to carbon dioxide emissions, the real estate sector is key to building a more sustainable future.
In Kuala Lumpur, JLL says stationary energy (energy consumed within buildings) accounted for 41% of carbon emissions. As such, it isn’t easy to imagine a sustainable future for our planet without the real estate sector playing a key role in finding solutions.
In recent years, the conversation around Malaysian real estate has shifted more towards sustainability and green buildings. What was once a “nice to have” is now being pushed into the mainstream. Occupiers, landlords and
investors, recognising the importance of sustainable real estate, have begun incorporating sustainability themes into their real estate strategies.
This is especially evident for government-linked companies (GLCs) and multinational companies (MNCs) in Malaysia, where JLL’s Sustainability Services team has undertaken several projects. One of these is the development of a hypermodern sustainable building for a GLC where JLL led the advisory and guided the development towards WELL certification. Within the private sector, JLL advised a shipping company on a decarbonisation plan for their
new warehouse development. These examples highlight how critical sustainability is for corporations. In today’s business environment, corporate strategies focused on sustainability can add brand value, meet consumer demands, increase efficiency, attract valuable talent and create new opportunities.
The shift towards sustainable real estate comes with additional benefits: (1)Growing demand from occupiers. As more companies increase their sustainability commitments, they become more willing to pay premium prices for green buildings. Such buildings typically command a rental premium of 5-15%, suggesting that occupiers are willing to pay that premium to move forward with their sustainability goals. (2)Optimising energy consumption. According to the Green Building Index, green/sustainable buildings could yield at least 30% to 40% energy savings compared to an average baseline building. (3)Access to incentives. Owners/occupiers of green/sustainable buildings are eligible for several tax incentives. (4)Avoiding brown discounts (referring to lower rents for landlords/decreased asset value when investors have failed to invest in sustainable upgrades).
Whilst there may be a higher initial outlay in implementing green/ sustainability initiatives in real estate, it is a necessary step towards building a better tomorrow.
As investors strive for diversification, commercial real estate debt is increasingly becoming one of the most popular debt strategies.
According to JLL, the need to mitigate market risks in light of recent steep cash rate hikes by central banks is further strengthening the appeal of debt strategies– a more stable alternative to shield investors from market volatility.
“Across the Asia Pacific region, central banks are increasing cash rates or adjusting exchange rates because of a massive, swift change in global monetary policy,” says Paul Brindley, Head of Debt Advisory, Asia Pacific, JLL.
Interest rates in some markets have risen by as much as 250 basis points in less than six months, JLL data shows. This rapid change is further accelerating the reallocation of capital into debt investments.
In fact, around 21% of investors are planning to deploy more capital in the debt space this year,
according to JLL’s Investor sentiment barometer.
“Despite the potential for a slowdown in markets, some institutional investors continue to seek avenues to deploy capital,” says Brindley. “A growing number of investors are opting to invest in debt over equity for its stability, trading off upside for cash returns.”
In more volatile markets where investors may not have the data points to invest in equity, debt provides an alternative at a lower risk point and with more downside protection, Brindley says.
As banks focus on the impact on rising base rates and incumbent sponsors, opportunities are emerging, particularly for non-bank lenders who can take higher risks, to tap demand for development financing.
“For sponsors that can’t meet the traditional metrics required to secure commercial bank financing or are seeking flexibility on covenants, borrowers are pivoting to the range of non-bank lenders that can provide such accommodations,” says Matthew Duncan, Head of Debt Advisory, Australia, JLL.
What was once a “nice to have” is now being pushed into the mainstreamMALAYSIA There are four key benefits of shifting towards sustainability
Against the backdrop of an overall market recovery, Colliers says soaring commodity prices and fluctuating exchange rates are changing the market sentiment.
Meanwhile, investments in major cities other than Tokyo such as Yokohama, Osaka, and Nagoya, are showing signs of recovery whilst crossborder investments remain strong.
There has been a flurry of activity amongst foreign investors, with M&G Investments committing JPY49.2 billion (USD378 million) to a 30-property residential portfolio in March 2022. In addition, Morgan Stanley and Lendlease invested significantly in new properties in Yokohama, whilst Gaw Capital acquired a residential portfolio spanning Tokyo and other major cities.
Hines, meanwhile, has revealed plans to develop a large logistics facility in Aichi Prefecture. At the same time, there continued to be net sales of J-REITs, resulting in highergrade properties being added to the market. For instance, Japan Real Estate Investment sold Harumi Center Building for JPY24.3 billion (USD187 million). And investment volumes appear to be on a gradual upward trend in major cities outside Tokyo.
Supported by a weak yen and widening interest rate differentials, properties in Japan are becoming increasingly favourable to overseas buyers. Foreign investors, largely hailing from Europe and the US as well as Asia, have a pricing advantage over domestic investors, and so we expect investments to increase.
The relaxation of travel restrictions in the first half of 2022 has also made it easier for senior executives from foreign investment firms to visit Japan. This could facilitate swift decisionmaking and likely further accelerate cross-border investments.
When looking for a new office space, companies are not only looking at the quality of the space itself, but also the available amenities nearby. As employees’ expectations of the workplace evolve, this is now a key consideration for landlords and occupiers alike.
“Coming to work is no longer limited to the office,” says Mireille Wan, Senior Director, JLL. “Amenities within a five-minute radius from the workplace can transform the experience for returning employees and offer a differentiated experience from home.”
Wan was moderating a panel on the transformation of workplace experiences at the Future of Office event featuring industry experts who discussed a broad range of issues, from the amenities offered within a five-minute workplace to how buildings and offices can meet demands for space flexibility.
“The concept of the workplace has changed in the past two years, given the shift from working in the office, to working from home and now
somewhere in between,” says Hui Min Chan, Director, DP Architects, at the Future of Office event.
The idea of a five-minute workplace is, however, not entirely new. Mixeduse developments, which allow people to live, work, and play within the same area, already offer a blueprint for how a five-minute workplace may look like.
Typically integrating retail, residential, and office spaces, mixed-use developments such as the upcoming South City Square in Australia, or Funan and Paya Lebar Quarter in Singapore, have become the benchmark for urban developments in recent decades.
“The progression of workplaces has shifted towards where you can work outside of your desk and your chair,” says Sam Okeby, Managing Director, Development, Asia, Lendlease, at the Future of Office event. “The expansion of mixed-use precincts creates the opportunity for places to work, whether that’s within a retail zone, or even within a yoga studio.”
With the workplace expanding beyond the internal office footprint, spaces within and around the office are equally important to the experience. “There’s a need to think about how these non-office spaces can be conducive for the work activity that needs to happen,” says Chan.
Like occupiers, landlords play a crucial role in supporting employees’ needs and expectations of the workplace as well.
“The question would be how we support our occupiers who are on the journey of workplace transformation,” explains Su Lin Wee, Executive Director, Head of Asset Management, Southeast Asia, PGIM Real Estate at the Future of Office event.
For companies to design the ideal workplace for their employees, landlords must be able to cater to high levels of flexibility necessary for the design and fit-out of spaces.
Landlords should be able to provide not only building amenities, but also flex areas and the infrastructural flexibility for occupiers to create their own space, says Wee.
The flexibility to adapt and reuse spaces with ease comes into play when changes are needed to match employees’ changing expectations of the workplace.
Amenities within a five-minute radius from the workplace can transform the experienceHui Min Chan Mireille Wan
Companies will look across their real estate portfolios to rethink their office spaces, invest in new technology and prioritise sustainability, as hybrid work becomes more entrenched in corporate culture, according to new research from real estate consultant JLL.
The Future of Work report reveals the trend towards dynamic working continues, with 56% of organisations in Asia Pacific saying that they will likely make remote working available to all employees by 2025
and corporate real estate (CRE) executives saying that successfully operating hybrid work will be the most important strategic priority over the next three years. This includes exploring flexible space options, with the average proportion of flexible spaces in Asia Pacific expected to grow between now and 2025.
“The next three years will prove to be an inflection point for real estate as businesses plot their future path and rethink the purpose of their portfolio,” said Jordi Martin,
CEO, JLL Work Dynamics, Asia Pacific. “The changes accelerated by the pandemic represent an opportunity to pause, think about a long-term real estate strategy and how it aligns with future business priorities.”
According to JLL’s research, the shift to hybrid work has become a marker of change in the workplace, placing greater emphasis on how companies can support employee mental well-being and maintain productivity. Additionally, the findings showed that 80% of organisations in Asia Pacific agree that quality space is a top priority as high-quality spaces are best suited to facilitate the kind of workplaces, health and well-being amenities, and sustainability credentials employees and corporates increasingly need.
Alongside an increasingly hybrid world of work, total headcount and real estate footprint is also expected to grow. The focus for companies will be on investments in quality spaces to ensure the long-term success of hybrid work.
“As the office continues to evolve post-pandemic into a destination for collaboration, occupiers will need to continue increasing their investments in creative spaces,” said James Taylor, Head of Work Dynamics Research, Asia Pacific.
Cushman & Wakefield’s new 11,400-sqft office exudes the same vibe as Singapore’s best bars.
Coaxing a work-from-home workforce back to the office is a challenge with many companies resorting to incentives such as free meals or requirements to work in the office a certain number of days. A different approach was taken by Cushman & Wakefield, which felt that a new concept for an office where people want to return to and work in was in order. It came up with what they call the “destination office”, located in Singapore’s Central Business District.
The first sign that this workplace is not a regular office starts at the lift lobby, where there is not even a nameplate for the real estate services firm, and no doors either. Instead, the reception area opens up to a view over Singapore and feels akin to a first-class business lounge, with coffee tables for guests to sit at and talk rather than be whisked off to a personality-less meeting room. The reason the space feels so much like one of Singapore’s lauded bars is that it was designed by MSDO, the same team behind the Manhattan Bar and Atlas.
Walking on from the large reception lounge is the working area which features adjustable height desks. It is not unusual to see one person sitting down working whilst the person next to him/her is standing up doing the same thing. Some meeting rooms are custom designed without the ubiquitous teleconferencing set up to allow people to just gather and talk. The most unique part of the office is hidden behind a mirrored door – the Library houses a long communal desk with wood and leather features, and is a no-talking zone where people can silently get on with their work, free of distractions.
“This is what offices of the future will be, where people want to be in to collaborate, learn, and create, whilst being allowed to have a quiet space to work. Our office is chock-full of amenities. It does not only give off a hospitality feel, it has everything employees need to work effectively,” Andrew Carmichael, Senior Director, Project & Development Services, Asia Pacific at Cushman & Wakefield, told Real Estate Asia.
Cushman & Wakefield tapped on its own in-house Total Workplace team to brief the creative team, not only on the company’s requirements but also on how they imagine the future office should look like.
Carmichael cited four key visions, the first ones being centred on their clients and workers, whilst the others were focused on creating a high-performance work culture, as well as promoting sustainability.
Cushman & Wakefield’s Carmichael shared the firm had to be “purposeful” as it manages over 2,000 employees in its Singapore offices alone.
Cushman & Wakefield, through its facilities and engineering arm, C&W Services, had likewise ventured into reimagining the office of the future when it transformed its office in Chai Chee into a “living lab”. This time, Carmichael said, the company envisioned a “destination office”, where
clients and workers, when gracing its halls, would have a hospitality-driven experience comparable to visits made to destination bars and even resorts.
The new office has a fully tech-enabled environment that allows seamless connectivity, giving employees the freedom to move around as they please. Cushman & Wakefield also updated its desk booking system, developed with Indoor Finders, which the staff could use to reserve desks and meeting rooms.
“The bookable workstations app is a simple, yet intuitive technology. It somehow knows the people the user wants to work with, who is with his or her team—it sends the user in that direction,” he said.
The 11,400-square foot office can be found at the new integrated development CapitaSpring. It features 101 functional work points and workstations to cater to Cushman & Wakefield’s workforce during peak hours.
The company also purposefully dedicated half of its space for collaboration with 17 meeting rooms and phone booths, on top of open spaces that amount to twice the size of the collaboration space Cushman & Wakefield had in its previous office. Aside from its Library, the destination office also features the ‘Saloon’, which has a cafe setting that allows employees to eat, meet, connect, and work.
“If you don’t want to book a desk, we encourage people to go around the periphery where there is very simple technology,” Carmichael said, noting that some huddle rooms were designed intentionally without any technology, whilst others feature all sorts of technology where workers can simply “plug and play”.
The new Guoco Midtown features five dimensions of office flexibility.
Work arrangements continuously evolving give rise to the need for flexible spaces. This challenges businesses to determine how much of the traditional office should developers retain or forego in designing a futureproof workspace.
GuocoLand struck this balance in the new Guoco Midtown, a 3.2-hectare integrated mixed-use development in Singapore’s Downtown Core.
The development will feature more than 700,000 square feet of Grade A office space expected to house an additional 10,000 office workers, residents, and visitors.
GuocoLand Group General Manager (Asset Management) Valerie Wong told Real Estate Asia in an interview they tapped into their experience in Guoco Tower, and the tenants’ sentiments in designing a development that caters to flexible space needs. The first phase of Guoco Midtown is expected to be completed by the end of the year.
“In our current buildings, Guoco Tower and another building reference, we have a co-working operator that fulfils one level of flexibility, but we wanted to really be
For office space, it’s all about efficiency
a part of the integrated real estate solution for tenants,” GuocoLand’s Wong said.
“We looked at what our tenants requested–they wanted the extra meeting rooms, larger town hall, and MICE facilities for up to 200 persons. We looked at the best of traditional spaces and how this is layered and enhanced with flexible spaces.”
Five dimensions of
Wong said Guoco Midtown fulfils the need to futureproof offices through five dimensions of office flexibility, particularly Flex in Core, Core to Flex, Flex Connect, Flex Lifestyles, and Flex Cloud. She added this helps ready tenants to make adjustments as needed for scenarios, such as a change in business cycles, or worse, in the case of another pandemic.
Under the Flex in Core dimension, GuocoLand ensured that the property will have highly efficient floorplates that allow tenants to design their office space as an activity-based workplace.
“For office space, it’s all about the efficiency and we built
that into the infrastructure – how the core of the building allows tenants to scale up, whether they want to pack 200 persons to 400 persons per floor whilst taking into account fire safety, efficient needs,” she said.
The Core to Flex concept will enable enterprises with their core office based in Guoco Midtown to lease additional dedicated, fitted-out swing spaces. Whilst Flex Connect will allow tenants to tap into a Network Hub annexe building that gives access to service-upon-demand office spaces and meeting facilities.
The Network Hub, spanning 80,00 square feet of space, is directly connected to the office tower. It offers a wide range of amenities, such as lounges, tech-enabled hybrid meeting and training rooms as well as conference facilities that can house up to 200 persons. The Hub also has office pods that have been soundproofed for virtual meetings.
“As a landlord, we have to see when they need to expand, and when they need short-term flexible spaces,” GuocoLand’s Wong said.
“By providing this network hub that offers flexible swing spaces, whether it is just small, for five persons, even up to customised enterprise office, we will allow our tenants to scale up,” she added.
Moreover, Guoco Midtown sought to bring its tenants an immersive work-live-play concept, through its Flex Lifestyle, with a focus on physical and mental wellness. In the Guoco Midtown Gardens, tenants may stroll within a 3.8-hectare landscaped area featuring a collection of 30 private and public gardens with over 350 species of plants.
Guoco Midtown will also have a 40-meter lap pool, a jogging track, and an event plaza that could function as an area for workouts or as an entertainment pavilion. Aside from its green deck, a Sky Garden will sit at the crown of the 192-metre-tall office tower.
On top of the garden and activity areas, Guoco Midtown will feature three retail clusters with an area totalling 50,000 square feet. Two luxury condominiums, the 219-unit Midtown Bay, and the 558-unit Midtown Modern will complete Guoco Midtown’s Flex Lifestyles concept.
Lastly, GuocoLand incorporated its flexibility concept into its IT infrastructure. Through Flex Cloud, Guoco Midtown tenants will be given access to private cloud service on-demand. This could in effect reduce the need for large data centres or server rooms.
Wong said building Guoco Midtown had been challenging as the GuocoLand worked towards catering to the needs of tenants coming from varying industries, such as insurance, life sciences, trading, finance, and even FMCG. But what GuocoLand looked into are the challenges businesses face today, particularly the short business cycles, and the struggle to retain talent.
“They like and appreciate that, as a landlord, we provide for their wellness, with Guoco Midtown’s 40- metre pool and green deck, that would help support their whole wellness and ESG initiatives for tenants,” she said.
“But it’s also very practical because, in a way when they plan their offices, they can literally turn 20% of their space,” she added.
We looked at the best of traditional spaces and enhanced with flexible spaces
It has been over two decades since rent controls have been implemented in Hong Kong, a city that has usually been laissez-faire with price controls; which is why for low-income families dwelling in subdivided units (SDUs) who have been grappling with high rents, plans under the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2021 to prohibit any increase in the rent for the first term of tenancy, which is equivalent to two years, should be welcomed.
On renewal, which is another two years, landlords of the so-called “cage houses” or “coffin homes” may only increase rent up to a 10% cap, but they may be restricted to an even lower rent rise.
The rent hike for the second term tenancy is determined by the percentage change of the citywide rental index published by the Rating and Valuation Department, which means that landlords cannot always increase the second term rent by 10%.
“If the percentage change of the relevant rental index published by the Rating and Valuation Department is lower than 10%, the landlord can only increase the rent to such percentage at most. If such percentage is negative, the rent must be reduced at least by such percentage,” Lilian Chiang, a senior partner at Deacons, explained to Real Estate Asia
In general, what the bill aims to do is safeguard tenants’ security of tenure and protect them from arbitrary rent increases. Some legal experts have cast doubts on whether the bill will actually work as intended.
Chiang expressed doubt as to whether the bill can effectively protect tenants because the bill does not regulate initial rents. “Since there is no restriction on the starting rent of the first term tenancy… the landlords may charge a higher starting rent to offset the cap on increase of rent,” she said.
This view was shared by Janice Yau Garton, a partner at Stephenson Harwood LLP, who told Real Estate Asia that “without regulation on initial rents and rents of future renewals after the protected 2+2-year terms, the problem of excessive rental hikes does not go away permanently.”
Since the measure was only implemented on 22 January, Garton said tenancy agreements entered before its implementation could have high rent, unfair terms and/or a longer rental term, circumventing the purpose of the amendment ordinance.
Another provision of the bill that would push landlords to greatly increase rents for existing and new tenancies is the forbiddance of overcharging tenants for utility bills, Doreen Kong, a partner at ReedSmith LLP said.
A ban on rent hikes in the first two years and caps on subsequent increases after that have landlords worried.
The problem of excessive rental hikes does not go away permanently
Under the bill, “if the utilities of the SDUs are not separately billed, the landlords can only seek reimbursement from the tenants if copies of bills and accounts showing how the amounts are apportioned to different parts are provided to the tenants, and the aggregate of the apportioned amounts do not exceed the billed amounts,” Chiang also explained.
If landlords will not impose increased initial rents, they will likely put the quality of their substandard flats at stake to counteract the rental hike cap, reducing the cost of repair and maintenance during the first two terms when they need to shoulder it, Chiang said.
One of the biggest disadvantages that the bill brings upon landlords is their inability to terminate a regulated tenancy to sell their property with vacant possession, Garton said.
Such tenancy restrictions impair a landlord’s “property rights through restricting their rights to the use and disposal of property guaranteed by Articles 6 and 105 of the Basic Law,” Kong said.
“It remains doubtful whether an appropriate balance has really been struck between the protection of tenants and interests of the landlords,” Kong added.
Looking at the bill’s effect on a larger scale, particularly on Hong Kong’s housing crisis, Kong said the measure is at most a “band-aid on a bullet wound.”
Kong added that there’s a need for a “comprehensive
The rental control policy is a shortterm, perhaps temporary, measure that does not resolve underlying issues in the Hong Kong market
and integrated plan on tackling housing problems.”
A band-aid solution
Garton agreed, saying that HK needs longer-term housing policies like building transitional housing, increasing housing supply in a faster and more efficient manner, and tighter regulations overbuilding and fire safety since its housing problem is a multi-layered issue that cannot be solved overnight.
“The rental control policy is a short-term, perhaps temporary, measure that does not resolve underlying issues in the Hong Kong market,” Garton said.
“Landlords are also able to charge more per square foot for SDUs and are unlikely to give up renting out SDUs just because of the new controls. If we compare the average rent of SDUs with private residential nonSDUs on Hong Kong Island by the square foot, SDUs are at $52.60 per square foot compared to $40.70 for the other,” she added.
Garton, however, said the ordinance is still a step in the right direction to alleviate the housing problems in Hong Kong, especially when coupled with other longer-term measures. Besides, the city “needs to start somewhere.”
Chiang, for her part, said the bill will help the government “collect more data in relation to SDUs for the purpose of formulating more effective housing policies,” since landlords will have the duty to notify the Rating and Valuation Department of the particulars of the tenancies of SDUs.
LOGOS is a dynamic specialist in developing property solutions for customers in the logistics sector.
We have over 7.5 million sqm of property owned and under development, with a completed value of US$11.4 billion, across 25 ventures, including the Singapore listed ARA LOGOS Logistics Trust.
The market has become increasingly international in its outlook.
Apart from client demands, realtors in Singapore also had to deal with changes in the real estate industry, which include the market being more driven by global challenges like inflation, rising interest rates, and the pandemic.
To keep up with the new realities, ERA Realty’s Division Director, Jazreel Lim said she had to change her mindset and the way she approached her clients.
Lim said she went back to “being a new agent” and worked to further expand her sphere of influence when she had difficulty selling in the first quarter of the year due to an all-time low inventory.
“In any market, referrals are usually the best source of leads… Simply put, if the fishes aren’t biting, I have to go where they are,” she told Real Estate Asia
According to Lim, she was only able to transact at least four homes in Q121, but in Q222, she had zero. In the same period, only 1,825 new private homes were sold in Singapore, a 47.8% decrease from
Sales & Capital Markets, Yap Hui Yee, echoed the sentiment, adding that understanding what clients truly want and providing bespoke services based on their needs is the secret to success in the real estate industry.
“There isn’t an easy sale in the real estate market. The key to a successful sale is a combination of preparation, planning and understanding the market plus your client’s needs and wish list,” Yap advised.
“Provide dedicated service with a good old-fashioned personal touch,” she added.
For the buyers, Lim advised them to “buy based on budget and needs,” instead of timing the market.
“Inflation, high mortgage rates and record high home prices are chipping away housing affordability... waiting may not be a viable option because there isn’t likely to be any significant improvements in the prices or the interest rates. I believe trying to predict what might happen next year is not the best home buying strategy,” Lim added.
the same period last year.
“I was panicking to see such a stark difference, but I think as real estate agents, we have to always keep cool. We have to understand that we can’t change the market, so what we can do is change our mindset and the way we approach our clients,” Lim, the youngest amongst SBR’s most notable real estate agents under 40 for 2022, said.
In approaching clients, Lim said it’s important that realtors educate their buyers about the market and its conditions.
“As long as we are able to educate buyers and help them with their decision making, that will help boost their confidence [into buying properties],” said Lim.
Lim said she educates her buyers by painting them a “proper picture” of what the market looks like, presenting them with charts and figures, and even helping them with proper planning.
Apart from educating buyers, Lim said it is also important to understand their needs.
Savills Senior Director, Investment
Another reality that realtors had to face, according to Yap, was the market becoming increasingly international in its outlook – be it marketing to overseas buyers or acting on behalf of offshore clients.
“Real estate has historically been viewed as a local phenomenon… but with the influx of international capital, it is almost impossible for real estate brokers to live in a vacuum and protect oneself from global influences,” Yap told Real Estate Asia.
This is why, she said, it is important for realtors to “now look beyond local and embrace this new global reality to surf the waves.”
“This is not to say that local is not important – it is, and it always will be – but factors including solid international reputation and political stability have solidified Singapore as a safe harbour for wealthy international investors to navigate turbulent seas,” Yap added.
Admittedly, she said embracing this new reality and strategising how she could expand her reach globally was a challenge – but, thankfully, she had colleagues from different regions who helped her to have a more extensive global clientele.
“There is a saying that while what
We can’t change the market; what we can do is change our mindsetRealtors advise clients to “buy based on budget and needs” instead of timing the market
you know is important, who you know can be more relevant,” she said.
“I have been working closely with Savills’ counterpart offices and colleagues to expand my regional network. Across the different regional offices, we work hand-inhand to ensure that we have in-depth and up-to-date knowledge of capital flows,” the Savills expert added.
Yap said her extensive global outreach, paired with an “out of
the box thinking” was what led her to successfully sell the national monument House of Tan Yeok Nee in a span of three months.
“Thinking out of the box, we started imagining the space and exploring other potential uses, such as a café, private clubhouse or arts gallery. The purchasers valued the research and the breadth of knowledge demonstrated as part of our
service, and eventually they loved what we had proposed,” she said.
“When I clinched the exclusive appointment, I knew that I’d leave no stone unturned. I tapped into every possible network to broaden my pool of buyers, going on to issue press releases to the Chinese and Hong Kong media in addition to our Singapore media,” she added.
Yap sold the national moment to an Indonesian family for about $85m in March 2022.
Yap hoped Singapore would reopen borders completely and other markets such as China and Hong Kong would follow suit so that she could meet clients residing in these areas face-to-face.
“In today’s increasingly competitive marketplace, it can be an especially tough landscape to traverse because global clients are almost always mobile clients. The best way for real estate brokers to do this is to accommodate the needs of international investors by approaching everything with creativity and extra care to their needs,” she said.
Sinar Mas Land is aggressively transforming Indonesia’s BSD City into a smart, digital, and sustainable city.
As development moves further away from the Jakarta city centre due to the dwindling availability of land, property developers realise that they must continue to provide supporting facilities for suburban dwellings. This effort is made to attract customers even though the products they develop are far from the city centre. Sinar Mas Land through BSD City takes the competition to another level. They are not merely building facilities. They build a whole township known as BSD City and further integrate it digitally with a breath of sustainability concept.
BSD City has become Sinar Mas Land’s flagship project where the area has now transformed into a smart city by implementing the concept of sustainability and healthy environment, improvement of mobility and further developing an area dedicated to digital economy dubbed as the Digital Hub.
“We also carried out a similar development in Nongsa Digital Park, Batam, which is developed as a digital bridge between Indonesia and Singapore,” said Director of
This place is dreamed by many
Herry said that this smart city concept was studied and processed in depth in the BSD City, including for energy transformation and mobility. The results of this study will be used to provide transportation solutions that are low in carbon emissions, and in accordance with today’s global demands.
“The best practices can be seen through the application of solar panels as an alternative energy resource and up to autonomous electric vehicles in BSD City. All these nods to President Joko Widodo’s vision at the G20 forum which will take place in Bali in November 2022,” said Herry.
Last year, President Joko Widodo reviewed the development of a smart city in BSD City which can be used as a benchmark in the development plan for Indonesia’s new capital city in East Kalimantan.
Sinar Mas Land combines the interests of business and office activities through the concept of green building with the interests of
environmental conservation in the BSD Green Office Park which is the first Indonesia to obtain Green Mark District from Building and Construction Authority (BCA) Singapore. under review, including the Sinar Mas Land Plaza BSD Building and the Green Office Park (GOP) 9.
The GOP area and office buildings built in it have implemented the concept of sustainable development in their operations, namely green building, low carbon emission, energy saving, water resource management, green waste management, and less plastic. All buildings developed within the compound are built to meet Green Building Council and US’GBC Leadership in Energy and Environmental Design. Thus every building – Sinar Mas Land Plaza, MyRepublic Plaza (GOP 6), GOP 9, and Traveloka Campus (GOP 1) –have certified and gained awards for their green efforts.
Sinar Mas Land builds a new business district named Digital Hub in 2017. The company highlights this area as a melting pot for academics, communities, startups, and multinational companies in the digital and creative sectors. This development will be equipped with the most sophisticated tech features. As for now, they are empowered with fiber optic network, Video Conference Room, Interactive Meeting Room, Indoor Sports Facilities Hall, Innovation Show Case Arena, Smart Offices, VR Room, Social Space, Game Room, and 3D Printing.
Building a digital ecosystem
In developing a digital-based city, Sinar Mas Land found the biggest challenge was on the execution side, where they had to bring together the communities and ecosystems in BSD City to accept the vision that Sinar Mas Land aspires to.
“The synergy of the community, ecosystem, and development is expected to support the creation of many new innovations and collaborations that can be enjoyed by the wider community. Understand that this place is dreamed by many, we facilitate people to get properties they wish for through the Double Dream program,” said Herry.
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TOD housing concept is currently in the spotlight amidst the development of public transportation access.
As the capital city of Indonesia, Jakarta is expected to become a Transit-Oriented Development (TOD) model for other regions in the archipelagic country. However, there are still obstacles particularly in the harmonisation between cities and funding. Therefore, the government launched the Land Value Capture (LVC) scheme to attract all stakeholders, especially private developers.
TOD is an integrated urban planning concept that combines transportation systems, residences, commercial areas, open spaces, and public spaces. In Indonesia, this concept is increasingly being developed by blending the residential areas with the business areas. This means that it needs support and collaboration from a number of parties, such as property developers, the government, and transportation managers. This is like what Jakarta is trying to implement as the capital city.
Jakarta is the centre of its buffer areas—Bogor, Depok, Tangerang, and Bekasi—where the government will build TOD to integrate them. For this reason, the government needs to make regulations amongst different regions and sectors. There is a need for harmonisation as stated in the Master Plan for Jakarta, Bogor, Depok, Tangerang, Bekasi (Jabodetabek), and Daerah Khusus Ibukota. “But the space to sit together is very limited because there are so many problems,” said Harun Al Rasyid Lubis, Professor of the Bandung Institute of Technology, to Real Estate Asia
“We are questioning what kind of strategy can be used. One of the things we know is the promotion of public transportation,” he added.
According to the General Chair of Real Estate Indonesia (REI), Paulus Totok Lusida, private sector participation and the potential of LVC in rail-based urban development such as the LRT (Light
We are questioning what kind of strategy can be used. One of the things we know is the promotion of public transportation
Rail Transit) and MRT (Mass Rapid Transit) are very important.
The temporary planned MRT construction has approximately 3-5 km distance between eact station. Ideally, the maximum is 1 km. In Singapore, the distance between each stations is around 500 m.
Therefore, one of the challenges in promoting public transportation is the spatial strategy, including land consolidation (both vertically and horizontally) which indirectly discusses how to monetise land and floor assets, Harun said.
Government welcomed LVC Private sector investment will help finance and accelerate development of TOD. “LVC will have an impact on increasing land prices due to investment, in this case, the development of TOD, which provides easy access to residents as well as the surrounding community,” Totok said in a webinar titled Private Participation And Land Value Capture for Urban Rail Development. So far, the development of TOD
in Indonesia is still being carried out by the government through State-Owned Enterprises (SOEs). The government even plans to build a TOD area around the gate of the rail-based transportation transit station. “Transportation, in this case, includes fast trains, which until now it is not clear what stations will be built. As for road-based, so far, SOEs are still doing it and there is no private involvement at all,” said Totok.
TOD will be developed at 17 station points, namely Depokbaru Station, Pasar Minggu, Durenkalibata, Cawang, Tebet, Manggarai, Jatinegara, Sudirman, Karet, Tanahabang, Palmerah, Kebayoran, Juanda, Cikini, Jakartakota, Grogol, and Klender.
The policy of encouraging development around the gates of public transportation stations (TOD Policy) needs to be supported by various policies from the government. So he welcomed the LVC concept from the government.
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Property experts said the shift of consumption from goods to services has given the two markets in Singapore a lift in 2022.
Over the last two years, the office and hospitality markets were severely impacted, but thanks to a shift of consumption from goods to services, these two sectors were finally able to turn the corner and kick start their journey to recovery.
“As Singapore’s economy and borders started to open and return to pre-pandemic normalcy, real estate sectors such as offices and hospitality that served the service industries saw higher investment demand and growth,” Wong Xian Yang, Head of Research of Cushman & Wakefield (C&W) Singapore, told Real Estate Asia in an exclusive interview.
Based on data from C&W, commercial investment volume surged to $7.2b in the second quarter (Q2), more than 2.5 times than the first quarter (Q1) 2022 figure. Meanwhile, data from JLL showed that as early as March 2022, investment volume in the mid-market hotel segment had already surpassed half of its full-year record in 2021,
transacting a total of $103m.
Wong said investors grew more confident and invested large sums of money into offices as more people returned back to the office and with the belief that the role of offices may change.
The property expert added that the office market had already achieved its “new normal” considering the prevalence of hybrid work. Wong said occupancy in the market stands at around 50% to 60%, quite close to the pre-COVID normal of 60% to 70%.
Knight Frank’s Head of Research, Leonard Tay, echoed this saying the office sector has seen “incremental recovery” this year.
“Now that everyone’s allowed back into the office without restrictions, office users have revisited their earlier decision to reduce office space. In the current market, the challenge is to make the in-person office space more compelling such that the office will be a more conducive work location compared to the home,” Tay told Real Estate Asia.
Like the office market, the hospitality segment also won big from Singapore’s reopening. For the month of June, Wong said hotels saw a “very strong growth” coming on the back of pent-up demand.
Data from the Singapore Tourism Analytics Network showed that in June, Singapore hotels’ average room rate was at $238.32, up 63.1% yearon-year (YoY). In the same month, the average occupancy rate of hotels also jumped 22.6% YoY to 76.92%.
The hospitality market, however, is still playing catch up, according to Tay, given that borders just recently opened in April.
“It is challenging for them because they were in survival mode for the last two years. It takes new resources time to bring operational levels back to pre-pandemic occupancy levels, but at least they will have come to the end of a very dark tunnel now that travel is allowed,” Tay said.
Wong added that Singapore’s hospitality sector remains under pressure since Chinese tourists are a significant source of tourism for Singapore, and China is still under strict quarantine measures.
“From April to December 2022, the segment’s recovery will be from a very low base, but 2023 should be the year of the beginnings of normalisation,” said Tay.
Industrial sector takes the lead in recovery race
Whilst the office and hospitality markets are still in the beginning stages of their revival, the industrial sector is well on its way to the finish line of the race to recovery.
According to Tay, 2022 was the year where the industrial market recovered without serious disruptions, adding that real estate indicators remained relatively steady throughout the first half of the year, increasing incrementally to the tune of about 1% to 2% each quarter.
“We also saw certain recordbreaking levels of foreign asset investment in manufacturing in the last few years, notwithstanding the pandemic,” Tay added.
Wong said the industrial market is “stronger than it was pre-COVID [and is] beyond the road to recovery.”
2023 should be the year of the beginnings of normalisationLeonard Tay Wong Xian Yang
Real estate experts said that the market will have a reset by 2023.
Real estate investors may have shunned Hong Kong in the past two years, but experts’ 2023 outlook—particularly for the industrial and retail sectors—may entice them to reconsider the city as a property investment destination. The property market is poised to end its down-cycle in 2022 and enter 2023 with hopes of normalisation.
“With the gradual easing of the social distancing and travel restrictions, we would expect to see a moderate recovery across all the sectors with momentum gathering pace starting in the last quarter of this year,” Dorothy Chow, Colliers’ Executive Director of Valuation & Advisory Services for Asia, told Real Estate Asia.
Investors’ eyes on industrial Amongst sectors, Chow said the industrial sector will remain the most attractive to property investors come next year.
“High yield assets have become the focus of the investors nowadays, and these would include industrial properties, logistic, and alternative assets,” said Chow.
“We expect the industrial market to have an increase in the rental and the capital levels next year,” the Colliers expert added.
To add, Cathie Chung, Senior Director of Research at JLL
in Hong Kong, said prices of industrial assets are relatively and comparatively “on the lower side.”
These factors are also what made the industrial sector the bestperforming segment for 2022, said Chow and Chung.
Chow said transaction volumes for industrial assets doubled in the second quarter, compared with the first quarter and on a year-on-year basis. In the same period, industrial investment volume also increased by 37%, according to Chow.
“In terms of leasing and sale activities, industrial is the most active sector. Tenants are bringing demand for warehouses, and investors are looking for valueadded opportunities,” said Chung.
“When investors acquire industrial properties, they convert them to a data centre or cold storage, or self-storage which also has good demand. There are repurposing opportunities for industrial properties,” she added.
Retail remains resilient
Like industrial, the retail segment showed some resilience during 2022, according to property experts. According to Chung, the segment was supported by domestic consumption and government stimulus packages, amidst the lack of foreign visitors.
“All of us have sort of retained our expenses within the city. Therefore, the neighbourhood and discretionary retail became relatively stable,” Chung said.
Operators of food and beverage (F&B) establishments likewise took advantage of the lower rents during the pandemic and expanded, JLL’s Chung added.
“We believe that the market is stabilised resilient and retailers are interested to come back when the market opportunities open come back, especially when the borders fully reopen and rents become more affordable,” JLL’s Chung said.
Chow echoed this but underscored that rising interest rates are also a worry for the market, which is why she expects the retail segment—both in terms of rental and property price—to either be stable or have a very mild increase in the next six months.
‘Flight-to-quality’
With many real estate buyers hopping into a “flight-to-quality,” Chung and Chow said the office market was able to steer clear of any turbulence and remained stable in the first half of the year.
“The sector was driven by demand for premium office space as tenants are fighting for better quality and more flexible office workspace for their workers,” Chung said.
Chow explained that flight-toquality means tenants are likely to pay “slightly more” for more highquality premises.
Since premium offices are located in Central, the submarket might see some moderate growth in rentals moving forward.
“Many of the tenants who were occupying spaces in non-core areas are looking at new locations or new premises in Central. We see that trend in 2022 and we still expect that trend will continue in 2023,” Chow commented, adding that the “flightto-quality” behaviour from tenants will also remain to be the key theme in the office market next year.
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In terms of leasing and sale activities, industrial is the most active sectorDorothy Chow Cathie Chung
Flexible work adoption is slower in the Asia Pacific due to lower levels of managerial trust.
Adopting flexible working conditions is notably slower in Asia Pacific compared to other regions across the globe. This may cause concerns because it is unlikely that the world will revert to the old ways of doing work, real estate analysts said.
In its Asia Pacific Office of the Future Revisited report, Cushman & Wakefield found that the shift to flexible working is much more pronounced in North America with more than 50% wanting to attend the office “3 days a month or less,” as compared to 20% in Asia Pacific, though there is intraregional variance.
“Whether you were ready for it or not, the pandemic has changed the world, more so the corporate real estate, and office culture. [Companies] need to listen to the employees and [employees, in turn, really need to] understand why the office is going to be important in the future,” Paul Seow, Associate Director, Asia Pacific Total Workplace, told Real Estate Asia
“It is the perfect time to reconcile that gap between the executors on the ground and the C-suites.”
Cushman & Wakefield tried its hand at reimagining the office of the future after moving into CapitaSpring, with the destination office exuding the same vibe as the best bars in Singapore, as well as transforming its C&W Services Singapore’s Chai Chee office into a “living lab of technology and innovation.”
Seow noted that in treading this path, the company made sure the office was designed with workers at its centre.
“When we were listening to our employees, we used our proprietary workplace strategy tool Experience per Square Foot,” Seow said.
“Together with focus groups and roundtable sessions, our Total Workplace team got to the gist of what was important for our community, both from a business perspective as well as from an employee experience perspective.”
Can you walk us through some of the preliminary findings of the report?
There are three major takeaways from our Asia Pacific Office of the Future Revisited report. First, the demand for office space continues to grow in the Asia Pacific markets and this demand will more than offset the impacts of flexible working resulting in ongoing net positive absorption. The predominant migration flow in the Asia Pacific is from rural areas to urban cities, and Asia’s major cities are expected to remain the dominant economic and employment centres in the region.
Second, hybrid working is here to stay; however, the adoption of flexible work practices is slower as compared to the Americas and EMEA. The desire to work flexibly sits in a bit of a spectrum in the different levels between markets. There are markets that have a very strong presenteeism culture in the office, and they are not as familiar with hybrid working and will need greater assistance with change management.
Lastly, the evolving role of the office is a confluence of multiple factors that are redefining the role and utility of the modern office. With the pandemic being one, it’s a huge driver of digital transformation in organisations. The rise of Gen Z, the first digitally native generation, who by 2026 will account for 25% of the workforce in APAC, and the rise of DEI (diversity, equity, inclusion), ESG (environmental sustainability and governance), and corporate consciousness. All these three are critical in shaping a destination or purpose-driven office. Companies that persist with outdated policies, technology, and infrastructure support will increasingly find themselves on the back foot in the war for talent.
The report found that the Asia Pacific region showed lower levels of flexible working. How can this be remedied?
The Asia Pacific is a complex geographical region with diverse cultures. Some markets with an ingrained presenteeism culture generally show a high return to the official rate, but very little flexibility or choice for employees. This is further compounded by domestic companies showing higher attendance rates versus multinationals in the same markets.
There are several reasons for these variations, including limited space in residential dwellings and infrastructural issues; but it’s interesting to note that markets in the Asia Pacific scored the lowest on the level of managerial trust – that is being trusted by a manager to execute your job with little
It is the perfect time to reconcile that gap between the executors on the ground and the C-suitesPaul Seow, Associate Director, Asia Pacific Total Workplace
oversight – and also tend to score very highly in presenteeism culture. Therefore, there needs to be a re-evaluation of how work is changing in the office, the required skill sets and managers to lead hybrid teams, how we deal with performance management and setting baseline behaviours, and the education of employees in embracing a nonlinear workstyle. There must be a multi-pronged concerted effort by companies to redefine their workplace strategy and corporate culture to balance corporate goals and employee needs to land on a solution that works for them.
What is it about Gen Z that is changing the work setup? I think they are way more interested in the purpose of work. The world has generally changed from the different generations. We used to work to survive, then we worked for prosperity, and then we worked for our children. Now it’s working for a purpose. The purpose-driven office is key to underline all these issues that Gen Z are concerned about, and this, of course, includes DEI and ESG initiatives of employers.
With this, what do you think the setup will be like by 2023? Do you think more companies will be shifting to the hybrid setup?
Most certainly because hybrid is here to stay. To have an understanding of what the office needs to be, we start by listening to the needs of our employees. By generating user personas and use cases to understand the why of the office, we can then dive into the where, the how, and what is needed from the space. Every sector of the industry has been disrupted by ideas that flow out of startups, and companies are starting to understand that ideas are the currency of the future. How, then, does an office as a modern agora drive ideas and collisions? We need to step away from the concept of facilities or property management, and into a hospitality-driven people experience to enable this paradigm shift.
Which features do you think other companies can easily adapt to their setups? Where should they start?
Companies should start by listening. The people on the ground know their job, but sometimes that does not translate to the C-suites. Sometimes the C-suites don’t have a clear understanding of what’s happening on a day-to-day basis.
By listening to the people on the ground, you can very clearly understand what exactly needs to stay, or what needs to change. What are the processes that work, what are the processes that are limiting your employees? Is your middle
The purposedriven office is key to underline all these issues that Gen Z are concerned about
management ready to work with hybrid working teams? Are they ready to understand what is needed in performance management for remote teams?
Another finding you’ve shared is that the influence of both DEI and ESG conditions also are included in the workplace. Can you walk us through how this would influence the workplace?
The rising importance of DEI and ESG is not only to employees, but it also reflects good corporate citizenry. The pandemic has drawn a line in the sand for employees, specifically around wellness, health, and the environment. Many companies tack on DEI and ESG policies as an afterthought to what they are doing, but what you need to do is incorporate it from the ground. Understand that an office is not just a place – it’s a tool to drive human experience. It’s the people and their interactions in the space that matter. Having a holistic workplace strategy starts by seeking out landlords and buildings that have a strong base in environmental best practices, and layering that with an inclusive design that supports and expands on the recruitment and development of talent and people with disabilities. And of course, bringing in the technology and policies that enable people to engage and thrive in the built environment. It’s all about listening, empathising, co-creating, and iterating a workplace strategy and programme that fits your company’s and employees’ needs and ambitions.
Now, given a post-pandemic, how should companies define their new offices, given that employees are now preferring to work from home?
There needs to be a balance in how companies are addressing this. There is a business goal, and business goals very much drive a lot of decisions that companies make. However, there is also the issue of the war for talent, and what is needed from the employees. There needs to be a task force that sits down and understands what the balances are. Many companies tend to still be making decisions with the crisis management teams that were put together from the pandemic, but that needs to shift into what it’s going to look like five years, ten years down the line.
Are there also specific requirements that a company should look into before shifting to hybrid setups?
Yes, it is important to make sure that the infrastructure and processes support your employees. There’s nothing worse than getting an employee to work from home, but face legacy processes where they still have to visit the office to execute that task. If they need access to specific servers, is that being taken care of via the company’s VPN and technology pieces?
Having the infrastructure in place with adequate bandwidth and licenses for firewalls is key to making sure that employees can execute their work.
Additionally, it is crucial that your employees are ready to make the change. If there is only one thing that companies do, it is to ensure that they build change management into their programmes.
This is where the concept of Total Workplace, comes in. Look at the workplace as a holistic ecosystem and not just specific places. Companies are hyper-focused on the where and the what. It is really all about how work is changing and why we are transforming our businesses. The where and the what of the office will fit into place once the first two questions are answered.
The SG gov’t increased stamp duties for property buyers by 5-15 percentage points.
In recent months, property buyers in Singapore were slapped with higher additional buyer’s stamp duties, including duties of up to 35% for individuals and up to 40% for housing developers. The move could force developers to focus on projects in smaller plots of land. Could this be the end of mega-developments in Singapore?
Not quite, according to Teo Wee Hwee, Partner, Head of Real Estate & Asset Management, Tax of KPMG in Singapore. He spoke with Real Estate Asia Editor-in-Chief Tim Charlton on the recent tax changes in Singapore and their impact on both buyers looking to settle in the country, as well as property developers.
What are some of the tax changes and regulatory changes that have happened in Singapore—and perhaps even since the 2022 budget was announced—that people need to be aware of?
There were a couple of tax changes that could potentially cause some concern to investors in the Singapore real estate space. First and foremost, there is the increase in the Additional Buyer’s Stamp Duties (ABSD) as part of an extended cooling property measure previously announced a few months ago. It involves having the ABSD rates raised for certain classes of buyers from a range between 5 and 15 percentage points. This particularly impacts those who want to buy residential properties in Singapore since stamp duties could go up to 35% (or 40% for housing developers), which can be perceived as extremely hefty.
The other change is the property tax rate increase announced in the recent Budget. The top marginal rate will increase from 20% to 27%, starting on the first of January 2023 for all non-owner-occupied residential properties, followed by another increase from 27% to 36% with effect from the first of January 2024. There is also a similar increase for owner-occupied residential properties - less hefty – ranging from a top marginal rate of 16% to 23% from first January 2023, followed by a 23% to 32% increase in the following year.
Singapore has always been known as a jurisdiction with an attractive tax regime. However, they are now really going for it in terms of the taxation increases. At what stage do you think investors think of other parts in Asia?
To be clear, Singapore residential investments will be impacted, not commercial ones. Purely from a stamp duty perspective, that can be pretty hefty compared with other countries. Singapore is still on par with countries like Hong Kong in terms of the punitive type of stamp duty rates but from a pricing perspective, there will still be a pretty big gap between Singapore and other top tier cities like Hong Kong, Beijing and Shanghai, for instance.
Do you think buyers just take the tax rates into consideration as part of the overall price of a property?
I think foreign investors and also foreigners who may want to move to Singapore and eventually become citizens will definitely look at the overall pricing. A lot of foreigners that come to Singapore still find Singapore’s residential properties quite competitively priced, even with the ABSD being factored in.
Do you have a sense of direction as to where the tax policies are going on Singapore properties?
Firstly, I suspect there could be some adjustments to the normal Buyer’s Stamp Duty that applies to anybody who buys a property in Singapore. Currently, anybody who buys properties will still have to pay normal stamp duties of up to 4%, on top of the ABSD that applies for certain individuals depending on the number of properties they are buying. The 4% is for properties valued in excess of $1m. That’s kind of strange because whether you’re buying a condominium or a good class bungalow, you’re still just paying the normal standard of 4% on anything in excess of $1m.
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residential investments will be impacted, not commercial onesTeo Wee Hwee, Partner, Head of Real Estate & Asset Management, Tax, KPMG Singapore
Knight Frank also expects rents to increase 3% to 5% this year.
Corporates are reconfiguring their offices and seeking less space that can be used for more collaboration by the employees as the hybrid work set-up evolves, according to a report by Knight Frank. But despite this, they are taking up “better” spaces in terms of quality, which drives the “flight-to-quality” movement.
With a recovering economy and the Singapore government’s drive to grow the Information and Communications, and Financial and Insurance sectors, Knight Frank is seeing a steady demand for office space for 2022 with rents expected to increase 3% to 5% for the year.
Calvin Yeo, Head of Corporate Real Estate for Knight Frank Singapore, spoke with Real Estate Asia Editor-inChief Tim Charlton to talk about the trends and outlook for Singapore’s office market.
Your survey said that 47% of companies are actually looking to improve the quality of their offices. Can you address these trends and concerns of corporate tenants and what they’re looking for?
We conducted a global survey, and 47% of respondents expected the quality of space to improve over the next few years. With hybrid working, business leaders are increasingly compelled to create a productive environment that is enjoyable, flexible, and healthy to work in for their employees, a workplace that also attracts and retains talents. On top of that, some 69% of respondents anticipated that they would resize their portfolio by more than 10%. And 90% of respondents still regard the office space as a strategic business device. What remains undeniable, the role of the office postpandemic is to nurture productivity.
Your report also had another interesting finding that mainstream companies are deciding to rent some coworking space for new teams or new projects that might be shorter in duration. Talk to us about that.
We find the co-working space inventory in the market serving very well for swing space requirements when corporates have not totally rationalised their requirements. But nevertheless, we are seeing the permanent office space remaining very relevant for corporates bringing their employees back to a collaborative work environment in the long term.
Your report showed that LinkedIn expanded its lease in MBFC Tower 2 to buy another 22,000 sq. ft. If you look at the dominant leases of space, would it be fair to say it’s big tech and fintech or are there any other trends that you’re seeing?
Last year’s net new demand was largely spoken for by tech companies like ByteDance. They took up significant space in the [Central Business District] CBD. Another tech company,
With hybrid working, business leaders are increasingly compelled to create a productive environment that is enjoyable, flexible, and healthy to work in
SEA, which took up an entire tower Rochester Commons outside the CBD at Buona Vista. So clearly, space that is being given up by financial institutions in the CBD and new supply outside the CBD are being very quickly backfilled by technology companies.
Can you share with us interesting trends in Singapore?
I cite the example of Guoco Midtown. They are one of the few landlords who are providing flexible space, meaning they manage the space inventory and through advanced dialogue with their tenants, they’re then able to provide for expansion requirements, given the uncertain new world order. There’s also what we call “gym-like memberships”, at co-working spaces where you could buy passes for your staff. So there’s the flexibility of going into co-working spaces, nicely decked up with virtual call rooms and quiet booths, and a conducive work environment if unable to return to the office or work from home.
Is there a shift away from the outer areas and big campuses into CBDs or is it the other way in Singapore?
We’re seeing a good balance. In town, we have Facebook and Amazon. We see Google out of the CBD at Alexandra, a business park location, and SEA being out in offices at Buona Vista. So it’s a good balance of tech companies being located in the CBD and outside of the CBD.
Modern workplaces will see variations of hybrid fit-out, either simple or complex.
Corporate occupiers grapple to fit out their offices to maximise space and create a high-performing hybrid workplace as the remote and in-office work setup becomes permanent, Cushman & Wakefield said.
Employers continue to put employee experience at centre-stage in the way office space is utilised whilst also ensuring the well-being of workers and incorporating environmental, social, and governance (ESG) standards in the design.
Sharon Wee, Head of Client Services for Southeast Asia (excluding Singapore), Project & Development Services at Cushman & Wakefield, spoke with Real Estate Asia Editorin-Chief Tim Charlton on how employers can strike a balance in keeping workplaces flexible whilst maintaining corporate culture and equity of employee experience.
Your recent report discusses how hybrid is going to be the new permanent office set-up. Can you give us an example of how that looks?
This whole hybrid employee experience has been at the forefront of all organisations in the past five years because of the war for talent, especially in the Asia Pacific where the workforce is younger and tech-savvy. With the added complexity of the COVID-19 pandemic, we now have what is being described as a hybrid workplace. This modern workplace will have variations of a hybrid fit-out, either simple or complex, as employees and organisations come to terms with working from home and in the office. For example, offices with hybrid fit-out will appear to be more lifestyle-oriented.
How different will the hybrid office set-up be from the old hot-desking concept? Can you give us an idea of how this can look?
We are seeing major shifts from permanent workstations and assigned seats. A hybrid workplace consists of different types of settings for different types of work. It also describes the balance between working from home and in the office.
If employees want to do more focused and quiet work in the office, there will be a designated area that is perhaps similar to a library quiet zone. If a collaborative space is preferred, loose furniture or something more lifestyle looking is the norm now. Some of the technology firms have modular arrangements that encourage the free flow of ideas during brainstorming activities and discussions. For people who are just coming in for half a day or a couple of hours, they have their designated workstations or non-assigned workstations, which are most likely booked via a bespoke application. The technology-enabled
workplace is now the norm and demanded as it optimises the employees’ workplace experience.
Does this mean that meeting rooms are a little bit less of a thing of the past when people are going to be sitting around the high tables in the kitchen, for example?
Yes, but it all depends on the culture of the company. We definitely see more of that in the US, Europe, and Australia, as compared to Asia and Southeast Asia. This is the culture we advocate to our employees and clients, as well. You might not need a six-pax meeting room for a casual conversation with a colleague, it could just be a coffee room chat. For culture building and branding purposes, organisations may prefer such activities to take place within their spaces instead of an external coffee shop. Educating employees on the right etiquette in terms of using meeting and conference rooms for appropriate tasks and events becomes essential. Right-sizing and using the meeting rooms appropriately is one of the areas in workplace strategy that we address with our clients.
Now Cushman & Wakefield have a workplace strategy tool called Experience Per Square FootTM (XSF). Can you tell us how that works?
Employee experience has been top of mind for clients
Offices with hybrid fit-out will appear to be more lifestyle-orientedSharon Wee, Head of Client Services, Cushman & Wakefield
in the past five years. What Cushman & Wakefield has developed is a data-driven tool, utilising sensors and surveys to measure and compare the experience of the workplace for individual users. This XSF tool statistically uncovers real estate and workplace metrics relating to employees’ engagement and experience.
But data is only data, what we layer on is the interpretation of this information to help clients realise what a high-performing work environment looks like. And during the COVID-19 pandemic, Cushman & Wakefield has adapted this tool to capture the work experience at home and in the office. A good example would be the work we have done for LinkedIn, which is renowned for the quality of their work environment. We compare and contrast over 30 LinkedIn offices across the globe with other clients and determine what a highperformance workplace looks like. Thereafter, we suggest the appropriate remedial action, which might be an upgrade or reconfiguration. The application of thoughtful design and fit-out standards is crucial in order to reflect the role and purpose of the office which is all about employees’ experience, engagement, collaboration, culture, and well-being.
What are some examples of a high-performance workplace that the tool can help uncover? What can companies do as quick fixes perhaps?
An amenity-driven setting as opposed to just a work desk with basic amenities results in a high-performing workplace, which improves productivity. In the long run, this will have a positive impact on the health and well-being of employees. An example of a quick fix would be keeping the workplace agile, by having more modular workstations and work settings that can be ramped up and down as required for different activities. Flexibility is the key here.
One thing that your report has highlighted was companies are looking for some ESG wins. What are some of the key ESG factors companies are looking for in their office?
Sustainability is not a new topic for either investors or occupiers in corporate real estate, but the approach to sustainability goes beyond seeking green and wellness certifications such as Leadership in Energy and Environmental Design (LEED) or Green Mark accreditation. Clients are setting their own standards and agenda, as we are at Cushman & Wakefield, around sustainability and roadmaps to carbon neutrality. This ties in to what was mentioned earlier about employee experience, where wellness is also top of mind. The talents today are also increasingly more environmentally, culturally and socially conscious. In order to retain and attract all these new talents, employers need to be visibly addressing sustainability and wellness by integrating all the relevant ESG measures into the workplace via design and aligning with their corporate values.
You’ve also just put out the much-anticipated 2022 Asia Pacific Office Fit-out Cost Guide. How are your clients using that? And what can we learn from that?
Cushman & Wakefield’s annual Office Fit-out Cost Guide is used by both our international and APAC-based occupiers for their capital expenditure planning. For multilocated organisations, it could be used for annual planning or just a one-off project for budgeting purposes. In this year’s publication, we have also included three key fit-out trends that will be useful for our clients, one of which is planning for permanent hybrid. We have been helping clients determine what this hybrid model means to them as different companies deal with the return-to-office in varying stages. It might seem daunting to them, but in this fit-out cost guide, we have also broken it down to three fit-out classifications—basic hybrid, collaborative hybrid, and advanced hybrid. Clients will want to know want to know how they can engineer an ideal hybrid ecosystem: how much space they need, what this space should look like, how much it will cost to fit it out, and how to meet the ever-growing design demands of the flexible workforce. All of these factors are being captured in the report.
Employers need to be visibly addressing sustainability and wellness by integrating all relevant ESG measures into the workplaceThe purpose of the office is all about employees’ experience, engagement, collaboration, culture, and well-being Balance is key in keeping workspaces flexible
Japanese firms sold their realties or converted their real estate into business assets.
In the past 12 to 18 months, real estate industry leaders had been busy catering to firms that had a lot of properties in their books, which they could outsource or sell to secure their financial standing, Stuart Porter, Private Equity, Financial Services & Real Assets Tax Partner and Asia Real Estate Tax Leader, at PwC Tax Japan told Real Estate Asia.
“There was more of a market demand from Japanese corporates who [want] to enter in discussions about what to do with their real estate, which may include selling it or using parts of it in their business, or parts of it with other affiliates that they hadn’t thought of before,” he said.
This move allowed owners to focus on more important business matters, Porter claimed, adding, in the last three to four years, there has also been a big uptake in private equity transactions in Japan, where the underlying real assets held by the acquired company are then sold and the proceeds used to refinance the acquired business.
Investors, both local and foreign, “remain very hungry” for affordable real estate assets (being assets that generate good stable yields with low funding costs), Porter said. This is especially so now that Japan’s Ministry of Foreign Affairs is opening up to foreigners for employment and business purposes since 1 March, so investors are now gradually able to visit Japan and assess their existing investment and/ or source for new ones.
The majority of the global investors eyeing to own lands in Japan include Europeans, large foreign pension funds, and to an extent, governments with sovereign wealth funds in Asia—they usually partner with asset managers in a single asset or single-managed funds, typically through Singapore or Luxembourg (where there may already be people on the ground).
Porter said the weighting of Japanese assets is considered “pretty heavy” because they are more expensive and generate stable yields, compared to most Asian assets.
Due to this, there are some foreign asset managers who do not have a presence in Japan, investing in the country, not to buy assets, but to buy asset management firms along with their employees because of their experience.
“[They are] using that to raise funds to support investments and investors in a market that usually has a reasonably good weighting for any Asian fund. That’s for the inbound business,” he said.
Another trend PwC expects in Japan is the change from decentralisation in both the commercial and residential
real estate markets because of the work from home environment. Porter also noticed that Japanese corporates have become more flexible in their work arrangements. In particular, the government has also become more flexible in terms of accepting data or submissions electronically, in light of the remote working environment.
Several service providers and other foreign-owned groups, meanwhile, continue to work from home because of the pandemic, he said.
Since business travellers and business investors are starting to come back to Japan to look at their assets and look at the opportunities, Porter said: “That would necessitate all of us going out to meet them and have meetings that we were used to all the time. So I think then we’re going to move more to hybrid working.”
Porter also said that complying with green mandates is also gaining traction, especially amongst real estate developers. There also remains continued interest in warehousing and data centres investments in Japan.
“It’s actually been quite a busy time for the real estate industry in Japan. Initially, obviously, they were affected by everything in the earliest early months of COVID. But since then, it’s actually been a very buoyant market even though a lot of it’s been done from home like everywhere else,” he said.
“remain very hungry” for affordable real estate assetsStuart Porter, Private Equity, Financial Services & Real Assets Tax Partner and Asia Real Estate Tax Leader, PwC Tax Japan
Firms said professionals must be experts not only in design.
If there is anything that changed in the past year in the field of architecture, it is that the industry has become integrated— from how architects are designing structures down to the way firms are transforming themselves.
Matthew Hon, Managing Director for Swan & Maclaren Singapore, said clients nowadays have different intentions with their properties, with some wanting to seek enhancement to their land for higher valuations.
“The scope of architecture has changed from a full service of design to completion of the development, to provide a certain level of a design package or even up to a certain stage of obtaining approvals,” Hon said.
In 2023, Hon sees that clients will like the firm to propose solutions on a full suite of integrated consultancy services. Because of this, Swan & Maclaren Singapore had to change the setup of its team in the architecture practice to become tomorrow’s built environment service and product solution.
“An office may no longer be solely full of architects of design and project architects but consist of individuals that carry a diverse background and skill set to package the proposal needed,” he added.
“Architects who only perform design may find themselves being challenged in its existence, with globalisation and the new interconnected world,” he added.
Intertwined structures
Integration will also be key to designing buildings in 2023, according to Doreen Koh, Vice President of Architecture, Healthcare Division, at CPG Consultants.
According to Koh, buildings will no longer be seen as “standalone structures but as part of the overall built environment intertwined with other infrastructure, transport, and community concerns.”
Domestically, a concern that the industry is focusing on is sustainability. According to Ivy
Architects who only perform design may find themselves being challenged in its existence with globalisation
Koh, Director of SJ Architecture in Surbana Jurong, almost 40% of global carbon emissions today are from buildings and construction.
“The building and construction industry is expected to make an even more concerted push toward sustainable developments to meet the Singapore Green Plan 2030 and long-term net-zero aspirations, with further adoption of new technologies and approaches to building design for more energy-efficient buildings,” said Yong Fen Bok, Vice President for Architecture, Education Division, at CPG Consultants.
Junlin Ong, Senior Associate at RSP, said that there is a “driving need for the industry standards and approach on sustainability to improve, and to bring about greener results for the well-being of its occupants and the environment.”
The SIT University Punggol Campus, for example, was designed with the largest private Micro Grid (MEMG-Multi Energy Micro Grid) and a District Cooling System that powers and cools various spaces.
“When in operation, quality indoor experience and thermal comfort will be achieved whilst running on clean and sustainable sources,” Ong said.
In 2023, Jean Cheong, Senior Associate at SAA Architects, said sustainability and regenerative architecture will remain on top of trends in the field.
“We now have better clarity of the benefits and projected returns of investment from the adoption of a vision of net-zero carbon and sustainable smart buildings. Selection of sustainable materials and energysaving from Internet-of-Things (IoT) are also some of many ways to achieve this vision,” she added.
Apart from focusing on sustainability, architects are also going beyond aesthetics and designing buildings that ultimately benefit the community like open spaces with small pocket parks, and urban farms which encourage social connections.
Surbana Jurong has developed a high-density vertical farming concept, called Floating Ponds which allows farms to be commercially productive even on limited land areas.
“It is important for architects to adopt an immersive design process in understanding the needs of the community, and involving the community in the design and creation process where possible to create a sense of ownership,” said SJ’s Koh.
Currently, Koh said architects are already designing spaces that can accommodate multiple uses. Urban spaces for example, are being designed to be more controllable, manageable, modular where possible.
Staying relevant Another way for firms to stay relevant in the field is by embracing and adopting digital technology.
According to RSP Singapore Senior Associate, Khoo Teik Rong there have been several emerging applications in the industry such as image generating software, DALLE.E and Midjourney.
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Home loan rates now range from 2.75% p.a. to 3.08% p.a.
not likely affect those who have “a more comfortable financial buffer— they are likely to still proceed with their purchase as floating rates are usually lower than fixed rates,” according to Colliers’ He.
There are also many buyers who are “trying to lock in the lower interest rates now.”
“Those who are keen to purchase a new home over the next six months are likely to continue with their property purchase,” Sun said.
PropNex Realty’s Head of Research and Content, Wong Siew Ying, echoed this saying that individuals “with genuine housing need to continue to transact.”
“That said, homebuyers largely remain price sensitive and some of them may adjust their requirements—e.g. location, size of unit—to keep overall price quantum manageable, amidst rising home financing cost,” Wong added.
In terms of prices, Colliers’ He said the Rest of Central Region (RCR) will be the most affected.
“Prices in the RCR are likely to correct due to the sharp rise over the past few quarters,” He explained.
Rising interest rates was amongst the factors that led to Singapore’s crash of home sales in June (-64% MoM). This is why the news of banks increasing their fixed-rate home loans—or worse, suspending them—has raised red flags, especially since the market had just gotten out of its “state of pause” when cooling measures were implemented in December 2021.
The suspension of such loans will likely dampen the sales volume and prices for residential homes in Singapore, Colliers’ Director and Head of Research Catherine He told Real Estate Asia.
Amongst segments, the impact on volume will be felt the most in the Outside Central Region (OCR) as buyers in this area are “more price sensitive.”
“The affordability threshold for
middle income owners, especially those holding multiple properties, are likely to be more affected,” Senior Vice President of Research & Analytics from OrangeTee Christine Sun said.
If interest rates rise above 3%, homeowners’ monthly installments may rise faster than their monthly rental income especially since they are not able to revise the rental rates whilst the contract is still in force, OrangeTee’s Sun added.
“Interest rates for floating rate is still about 1.5% whilst fixed is just above 2%. As total debt servicing ratio uses 3.5% interest rate for the calculation, most people should still be able to service their loan when interest rates stay below 3.5%,” explained OrangeTee’s Sun.
Unlike price sensitive and risk averse buyers, the suspension will
No major impact for now Whilst the suspension is expected to dampen the residential market in the future, Huttons and OrangeTee said current situation suggests that the move does not have a major impact in both HDB and private residential market.
Huttons Asia’s Senior Director of Research Lee Sze Teck said most buyers opt for floating rate loans when they purchase properties which is why the suspension has no noticeable impact in the market.
OrangeTee’s Sun said the buyers take floating rates as these are much lower than fixed rates.
“Buyers can opt for a three-month SORA (Singapore Overnight Rate Average) based loan which has an interest of around 1.5% which is
Homebuyers largely remain price sensitive and some of them may adjust their requirements to keep price quantum manageable
much lower than a fixed rate loan interest of 2.6%. For HDB buyers, the current loan from HDB is fixed at a rate of 2.6% as well,” Lee said.
“Loans for buildings under construction are under SORA. Buyers will still enjoy the low rates of around 1.5%. For HDB buyers, similarly they will enjoy lower rates if they choose a SORA based loan,” Huttons’ Lee added.
HDB flat buyers can also opt for a housing loan from the HDB which has a concessionary interest rate that is pegged at 0.10% above the prevailing Central Provident Fund (CPF) Ordinary Account interest rate—at 2.60% per annum (p.a.) presently, said Wong.
“DBS Bank also has an HDB Exclusive Package offering five-year fixed at 2.05% p.a,” Wong added.
To identify which home loan package best suits their needs amidst rising interest rate environment, Wong advised home buyers to assess their financial circumstances carefully and work with banks.
“Also, have some funds set aside for any unforeseen events or further increase in interest rates in the future,” Wong said, adding that buyers may also choose to tap their CPF monies to help finance the home purchase.
For those who can still afford to opt for a fixed-rate home loan package, OCBC currently has the highest interest rate of 2.98%. The bank’s new rate was implemented in July.
Maryanne Phua, Head of Home
Loans at OCBC Bank told Real Estate Asia that they review their mortgage pricing regularly to ensure that their home loan packages remain competitive.
“As interest rates are now on the increasing trend, we advise consumers to review their affordability before committing to their home purchase,” Phua said.
DBS and UOB both also revised their rates to 2.75% and 3.08% p.a., respectively.
Jacquelyn Tan, Head of Group Personal Financial Services at UOB said this was a response to the current market conditions as they review their “home loan packages to ensure they remain competitive and that they meet the needs of homeowners.”
“Even with the rising interest rate environment that we are currently in,
we still offer fixed rates for customers who want to lock in rates for longerterm,” Tan said.
Some banks are not just increasing their interest rates but also removing the option to avail of fixed-rate home loans entirely. In April, reports said banks like Standard Chartered and Maybank ceased offering fixed-rate home loans.
“Yes, we are still placing our current focus on offering floatingrate packages only,” Standard Chartered told Real Estate Asia in an email for comment.
This move by the banks may have been the direct effect of the United States Federal Reserve increasing its benchmark interest by 0.75%, the biggest increase since 1994.
Meanwhile, another increase is looming in July with Fed Governor Christopher Waller saying that he is supporting another 75 basis point increase in the month.
Looking ahead, Jefferies’ Equity Analyst, Krishna Guha, predicts that the increase or decrease in mortgage rates will heavily depend on the trajectory of the funding cost.
“We have sensitivity to rising rates on mortgage payments. Assuming a 100 bps increase in mortgage rate, mortgage payment goes up by about 11%. This is for a $1m mortgage loan of 25 years. We don’t have a forecast of dollar interest rates. Our house view of Fed Funds rates is for another 75 bps hike in July, followed by two 50 bps hikes in September and November, and three 25 bps hikes in the subsequent meetings,” Guha said.
As interest rates are now on the increasing trend, we advise consumers to review their affordability before committing to their home purchaseThe increase or decrease in mortgage rates is predicted to heavily depend on the trajectory of the funding cost Catherine He Christine Sun
Realtors cited two property types that can offer higher upside potential in return.
due to the growing popularity of online purchases,” Yan said.
“High quality industrial assets have been the priority purchase options by institutional investors in the last 12 to 18 months,” he added.
In terms of location, Yan said it’s best to invest in industrial assets located in such as Kwai Chung, Tuen Mun and Yuen Long since these areas are “supported by infrastructures.”
Cushman & Wakefield’s Head of Hong Kong PRC Team, Capital Markets, Charli Chan said investors must also look into the first- and second-tier cities in East China and the Greater Bay Area (GBA) when planning to invest in logistics or warehouses or other new economy assets such as industrial parks and data centres.
“East China is a mature industrial logistics market, whilst the GBA offers an increasingly comprehensive transportation network. Both areas present a range of investment opportunities,” Chan said.
Investors keen on putting their money into Hong Kong real estate must keep a particular eye on hotels because regardless of whether the border to the Mainland reopens sooner or later, they will still gain from the asset class.
Since hotels can be transformed into long-stay apartments or co-living spaces, it can benefit from strong local demand for rental accommodation.
The rental yield of hotels turned apartments or co-living spaces could reach 3% to 4%, according to Oscar Chan, Head of Capital Markets at JLL in Hong Kong.
If borders open, Chan said owners can resume the operation of their hotels and can even achieve a rental yield between 5% to 6%.
Since the asking prices of hotels are still at a low level, Chan said it will be good to invest in the asset class now.
“With the anticipated border opening to international travellers, hotel rates and occupancy are expected to see a decent rebound in the next six months,” Reeves Yan, Head of Capital Markets at CBRE Hong Kong, commented.
Apart from hotels, retail properties also offer higher investment yield and have higher upside potential in return. According to Chan, retail properties in the neighbourhood area
offer a rental yield of 4%.
“The local demand in the retail market in these areas remains strong,” JLL’s Chan said.
Yan said Central, Causeway Bay, Tsim Sha Tsui and Mongkok are also good locations for those who want to invest in commercial assets like retail and office since these traditional core locations have the “strongest recovery potential when the economy gains its momentum back.”
OKAY.com’s Tommy Kwan said Central will also become the heart of the city again once the economy improves and ex-pats eventually return to Hong Kong.
“There will be demand again from workers wanting to live close to work. It is always a safe bet to invest in midlevels,” he said.
Whilst hotels are gaining popularity amongst inventors, Yan said the industrial escort remains the most sought-after asset class to invest in given its extremely low vacancy rate and tight supply.
In the next 12 months, industrial rent and value are expected to see another 5% to 10% growth.
“During the pandemic, logistic assets, warehouses and cold storage demand has increased significantly
Whether investors are looking to invest in commercial or leisure properties, Kwan said the best location would be Kennedy Town given the abundance of future projects in the area.
Kwan said there will be new hotels, shopping malls, and luxury apartments to be built near the beginning of Victoria Road which connects Kennedy Town to Wah Fu.
“With the existing MTR and public transport network, it will certainly transform the area in near future,” Kwan said. Kennedy Town is a seven-minute MTR (Mass Transit Railway) ride from Central.
The government’s plan to put more greenery and leisure areas along the harbour also makes Kennedy Town more attractive, according to Kwan.
“All these improvements will attract more people to live or spend time or money in the area, which will then help bring up the properties’ prices in the near future,” he said.
Kwan also mentioned that Kennedy Town will be “the connecting point” of the city’s artificial islands in Lantau and Hong Kong Island.
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In 2022, Hong Kong has slowly regained its attractiveness as a property investment destination, and amongst to thank are the region’s realtors who were determined to end the city’s downcycle.
In recognition of their hard work, Hong Kong Business listed 17 realtors under 40 who not only thrived in managing clients and negotiating deals but also displayed leadership in their respective communities amidst challenging times.
Real Estate Asia’ (REA) first-ever roster of real estate luminaries consists of realtors from Hong Kong’s biggest and top-performing real estate firms like Cushman & Wakefield, Knight Frank, Colliers International, Savills, CBRE Hong Kong, JLL, and OKAY.
Leading the inaugural list are realtors in the office market, which took nine spots in the list. The youngest in the pool of realtors, Colliers’ Joyce Leung, 25, is also in the office leasing space.
Apart from closing millions worth of deals, this year’s honorees have also been successful in honing and training their junior colleagues to be better realtors.
Hong Kong’s real estate luminaries of 2022 were chosen by their companies and colleagues as they have shown creativity and innovation in their profession at such a challenging time. They are ranked by age.
Joyce Leung, 25, Colliers
Joyce Leung is Colliers’ Senior Manager for Office Services. She has been with the firm for three years, during which she has consistently delivered strategic solutions to business partners, tenants and landlords. One of her notable achievements includes the recent relocation of BASF to Two Taikoo Place, a 60,000 sq. ft. activity-based sustainable workplace project.
Jason Wo, 31, Savills Hong Kong
Jason Wo has been with Savills for nine years, having made over $16.3b of transactions from 88 properties. He is also a member of both the Hong Kong Institute of Surveyors and the Royal Institution of Chartered Surveyors. He also provides clients with innovative proposals on tenant mix models and revitalisation schemes.
Jason sits on committees of the Land Policy Panel, Housing Policy Panel and Tomorrow Lantau Task Force in HKIS to participate in the discussion over government policies on land matters and urban planning and to give professional advice to the government.
Jayde Pamuk is a consistent top 5% performer, closing an average of over three transactions a month since joining OKAY.com eight years ago. She has successfully represented a client as a sole agent with the sale of a property valued at $90m in 2021. She has also earned a reputation for her trust and advice.
Troy Wu, 32, CBRE HK
Troy Wu is CBRE’s Senior Director for Advisory & Transaction Services. He supported some of the company’s most significant projects over his 10-year stint at the company. He has demonstrated exceptional capabilities in client consultation and management, revenue generation, cross-collaboration and staff coaching. Because of his outstanding record, he was appointed Director in 2019 – the youngest ever in the team.
Sam Gourlay, 33, JLL Hong Kong
Sam Gourlay has led several of the largest leasing transactions in Hong Kong, valued at over HK$2b since 2018. He was appointed as the Head of Tenant Representation for JLL Hong Kong in January 2021. As an RICS Chartered Valuer and Surveyor, Sam is responsible for maintaining best practice across JLL’s growing Office Leasing Advisory team. With his reputation, Sam advises both local and international firms across a broad spectrum of leasing services.
Nicole Chan, 33, JLL Hong Kong
Nicole Chan has been in JLL’s Kowloon Office Leasing Advisory Team since 2012, wherein she gained significant experience providing tenant representation and consultancy services to various clients. She has been one of the top achievers of the team since 2016, and has achieved over US$1m in sales revenue despite the pandemic.
Godfrey Cheng, 34,
Godfrey Cheng is the youngest deputy senior director in Savills Hong Kong. Since joining in 2010, he has found his niche in handling sizeable and complicated whole block transactions. As Deputy Senior Director of Investment CEO Office, he has concluded a total of HK$70b in property and equity transactions, and has established a strong client network of ultra-high net worth individuals, institutions, and developers during his stint as.
He was also the winner of the Best Deal of The Year in 2017 and 2018 in Royal Institution of Chartered Surveyors (RICS) Awards Hong Kong. In addition to his brokerage role, Godfrey also leads a team specialising in Savills digital transformation. In 2022, he oversees Savills IT Solutions Limited, a Savills subsidiary that drives technology innovations within the property industry.
Oscar Chow, 35, Savills Hong Kong
Oscar Chow is the youngest senior director in Savills Hong Kong. Now a chartered surveyor, he has completed multiple landmark deals by advising ultra-high-net-worth individuals, conglomerates, industrialists and private equity funds on the acquisition and disposal of a range of industrial properties in Hong Kong. He is widely regarded in the sector for his impressive track record and industry knowledge.
He won the prestigious “Best Deal of the Year” award at RICS Awards Hong Kong 2021. He also won the title of “Savills Best Agent of the Year 2020” on the basis of the same transaction.
Maverick Law, 35, JLL Hong Kong
Maverick Law is a Director at JLL Hong Kong since 2018. With his 12 years of experience in the industry, he has led over 400 transactions and is key in driving some of the city’s landmark transactions. Law has also been a key advocate in promoting technological innovations in real estate.
Charli Chan, 36, Cushman & Wakefield
Charli Chan serves as the Executive Director and Head of Hong Kong PRC Team, Capital Markets in Cushman & Wakefield. She is a results-driven professional that has over 10 years of experience. She has also provided disposition and acquisition advisory for commercial office, retail, logistics projects and portfolios in C Hong Kong, with a transaction track record valued at RMB60b.
Tommy Chan, 36, Savills Hong Kong
Tommy Chan is one of Savillsy’s youngest Senior Directors, joining the company in 2007. Having over 15 years of real estate experience in the city, he specialises in the acquisition and disposal of whole block buildings and development sites. Despite the pandemic, he has closed deals on various projects worth over $2.44b. His notable achievements include the acquisition of the headquarters in Fanling in 2021 on behalf of Hong Kong Housing Society, and acquiring the site at 89 to 93 Tai Hang Road in a highly complex case involving a Civil Servant’s Co-operative Building Society (CBS) development on behalf of SEA Group.
David Wood, 36, CBRE
David Wood is an executive director in CBRE’s market-leading office leasing team, overseeing a specialist team of highly experienced professionals. He has over 15 years of experience in real estate where he has transacted approximately four million sq. ft. of commercial space. His broader experience includes valuation and consultancy work, covering land use advisory, single asset/portfolio valuations, amongst others.
Clayton Evans, 37, Cushman & Wakefield
Clayton Evans is Cushman & Wakefield’s Executive Director for Office Services, where he is responsible for mentoring junior and mid-level brokers, in addition to winning and retaining leasing mandates. He advises corporate occupiers on renewal, relocation and rent review negotiations. Clayton has been a regular recipient at Cushman & Wakefield’s annual awards of excellence for recognition of his revenue production.
39, Savills Hong Kong
Jay Fan is one of the top-performing senior directors in Savills Hong Kong. He has completed 51 deals that totalled $14b in consideration since joining the company in 2011. His expertise is in the disposal of various assets spanning offices, shops, residential buildings, and sites.
Some of his accomplishments are the disposal of the top 3 floors with naming rights of 888 LCKR, a redeveloped office building that worth $1.188b, and an en-bloc commercial building at 69 Jervois Street with consideration of $1.8b.
Flo Geiser, 39, OKAY.com
Flo Geiser has been with OKAY.com for seven years, wherein she has achieved significant growth. In 2021, she won five sole agencies and represented sellers of luxury homes with a value of over $20m each. Geiser also often liaises between agents and senior management, and shares insights that enrice
Tommy Kwan, 39, OKAY.com
Tommy Kwan joined OKAY.com and the real estate profession in 2019, after spending 13 years in Finance. The skills he brought with him helped catapult him to the top. With a focus on luxury properties, the majority of his sales transactions each have a value of over $25m. He has won and represented 10 sole agencies to date.
Reeves Yan, 39, CBRE HK
Reeves Yan is CBRE Hong Kong’s Head of Capital Markets, where he leads a team of 30 elite consultants in delivering world-class investment solutions to clients. With over 17 years of solid experience, he is one of the top deal makers in the industry. Yan delivers a high standard of professional services with his well-proven track record and valuable experience.
Amongst locations, realtors suggest Singapore’s Core Central Region.
Amillion dollars may not buy you much, but if you are planning to invest in residential real estate in Singapore, consider these three things: the property must be near prestigious schools, it must be located within the Core Central Region, and look into the mass market.
George Tan, Managing Director of Savills Digital Residential Marketing, said one important factor is location.
Tan said buyers must consider areas that are well-demanded and have easy access to schools, MRT, malls, food and beverage (F&B) establishments, and places of recreation.
PropNex realtor, Andy Lim, echoed this, adding that buyers should particularly invest in properties within one kilometre of the prestigious schools.
In the residential market, Tan advised high-net-worth potential buyers to look at Districts 1, 2, 4, 6, 7, 9, 10, and 11, given that properties in these strategic areas have good rental demand.
Good developments in these areas include Perfect Ten, Hyll on Holland, Leedon Green, Bishopsgate Residences, 3 Orchard by the Park, and Klimt Cairnhill.
Lorraine Toh, Associate Director for Residential Services at Savills, also said District 10 will be a good place for investment since “large units are located within the prince central districts,” Toh said.
“This would present a timely opportunity for the well-heeled investor, international and local alike, to act upon such trophy properties when they become available for sale,” Toh added.
In terms of major sub-markets, Huttons realtors Oliver Tan and Brandon Loh suggested that buyers look into real estate projects in the Core Central Region (CCR) given that the gap between the Outside Central Region (OCR), the Rest of the Central Region (RCR), and CCR is narrowing.
Singaporeans typically prefer homes that can give them the security of a price appreciation after 5-10 years
“Generally, it depends on your budget. But the rule of thumb is that the higher the asset class, the better the profit,” Tan said.
“CCR homes will potentially increase from the current level of $2,801 psf to $3,400 psf,” added Tan.
As for specific properties in the CCR, Loh suggested Hyll on Holland and Leedon Green.
It will also be worth it for buyers to look at new launches in the RCR like The Landmark, said Loh.
Studying the Urban Redevelopment Authority’s Master Plan can also help buyers select which area they should invest in, said SRI realtor Jaslin Khoo
Momentum in the mass market
For buyers with slightly over a million dollars, OrangeTee & Tie realtor, Christopher Ng, said they should invest in the mass market or the “private residential homes that are mainly catered for the average households or HDB upgraders.”
“Singaporeans typically prefer homes that are comfortable to stay in and can also give them the security of a price appreciation after five to ten years,” Ng added.
With the opening of the North-South Corridor, Canberra, Sembawang, and Woodlands are promising areas to consider.
Decent-sized real estate properties in these mature locations are available at less than $1.2m.
“With recent launches becoming more expensive, resale properties are becoming attractive property options, too. It won’t be surprising to see a higher appreciation in resale prices, in time to come,” he added.
Looking at property type, OrangeTee & Tie realtor, Jane Tan said developments with en-bloc potential are a favourable investment given the “potential monetary rewards that come with en-bloc sales.”
For commercial investment properties, Tan said “freehold buildings with a land component can be a worthy investment as such assets have historically performed well in terms of capital appreciation.”
PropNex realtor, Athalia Soon shared the sentiment, saying that buyers should look for “undervalue freehold properties in the core central region,” given the latest cooling measures and the rising interest rates.
Another commercial property that realtors consider a good investment would be shophouses since they present an “opportunity to hedge against inflation and the volatility in the equity market and other asset classes,” said Yap Hui Yee, Senior Director of Savills’ Investment Sales and Capital Markets team.
For more on this story, go to https:// realestateasia.com/
ingapore’s status as a safe haven for property investors remains intact, thanks to the city’s realtors who were determined to push the city to a holistic recovery in 2022. In recognition of their hard work, Real Estate Asia listed down 20 realtors under 40 who not only thrived in managing clients and negotiating deals but also displayed leadership in their respective communities amidst challenging times. This year’s list comprises of realtors who are not only million sellers but are also mentors. This list is arranged from youngest luminary to oldest.
Jazreel Lim, 29, ERA Realty Network Pte Ltd
Jazreel Lim is ERA Realty Network’s Division Director. This 2022 marks her eighth year in the real estate industry. She has previously worked as an administrative assistant at an international real estate company before shifting to the industry fulltime in 2019. She utilises her knowledge in digital marketing and content creation for her real estate business.
Brandon Loh, 29, Huttons Asia Pte Ltd
Brandon Loh started his real estate journey in 2019, having transacted various types of properties and helping many clients manage their property portfolios and upgrade to their dream homes. In a short period, he won several accolades including Huttons’ Top Rookie Award and Millionaire for 2021. He also shares about Huttons tools to enhance the efficiency of other Huttons Champions.
Andy Lim, 30, PropNex Realty
PropNex Ambassador, Andy Lim has achieved Millionaire Producer for three consecutive years since 2020. He is a consistent Top 1% agent in the industry and leads a team of 40. He drives sales and rental of commercial and residential properties in Singapore. He also establishes contact with clients and negotiates business terms and legal parameters in relation to the acquisition and disposition of major locations and projects.
Firdaus Z, 30, ERA Realty Network Pte Ltd
Firdaus Z joined the real estate industry in 2015 because he wanted to know how to gain wealth from property investments. He tapped into his passion for content creation, which was not prevalent in the industry back then. Now, he serves as ERA Realty Network’s Senior Marketing Director. He also mentors younger agents and inspires them to improve the industry.
Dulcie Liu, 31, ERA Realty Network Pte Ltd
Dulcie Liu is no stranger to overcoming obstacles or carving out opportunities for her clients. She has steadily built up a client base and a name for herself, as well as establishing record high sales prices for her clients and racking up multiple achievements along the way. Currently, she serves as ERA Realty Network’s Branch Division Director.
Chris Tee, 31, ERA Realty Network Pte Ltd
Chris Tee is currently a Division Director at ERA Realty Network. He has been in the real estate industry for six years and is aware of the importance of integrating traditional and digital marketing to stay ahead of the game. He has also recruited associates to inspire more people to achieve success in the industry.
Andreas Tan, 33, ERA Realty Network Pte Ltd
Andreas Tan started out as a real estate salesperson at 23 after completing his national service. Since his first year in the industry, he has been recognised consistently as a top producer in the trade. He takes immense pride in honing his skills to better himself and his team of associates within the company. He is presently a District Division Director at ERA Realty Network.
Christina Tan, 33, SRI Pte Ltd
Awarded SRI Champion #1 Top Sales Producer in 2021, Christina Tan has built a reputation on her savvy negotiations, uncompromising integrity, and cutting-edge marketing strategies. She has transacted more than $100m worth of properties and achieved more than $2m in sales commission in the past year. Tan earns the respect of her clients through her extensive market knowledge and unmatched commitment. Along with her accolades, Christina has consistently achieved the Millionaire Realtor title three times in her career.
Jane Tan, 34, OrangeTee & Tie Pte Ltd
Jane Tan has made a name for herself in the real estate industry, specialising in collective en-bloc sales. She became an Associate Deputy Group Director at OrangeTee & Tie in 2018, cementing her position as one of its top-performing agents. The flexibility, training, and technical support that OrangeTee provides enabled her to excel as an agent whilst managing other responsibilities.
Oliver Tan, 34, Huttons Asia Pte Ltd
Oliver Tan has been Huttons’ Millionaire for four consecutive years and has achieved feats in the firm. As a consistent top performer, his transactions range from HDBs to condominiums and GCBs. He has excellent interpersonal communication skills and actively shares his industry knowledge. His background in banking also helps him provide valuable insights to clients.
Yap Hui Yee, 34, Savills (Singapore) Pte. Ltd.
With extensive experience and an established reputation, Yap Hui Yee has been instrumental in helping high-net-worth individuals purchase their dream properties in Singapore’s competitive commercial property market. She is Savills
Singapore’s Senior Director for Investment Sales & Capital Markets team. She sold a national monument for $85m despite competing with three other agents. She has previously brokered numerous commercial transactions worth S$980m.
Claire Tey, 35, SRI Pte Ltd
Claire Tey began her career as a banker specialising in corporate real estate. She transitioned to the real estate industry upon gaining experience in Singapore’s property market. Initially specialising in the industrial market, Tey expanded her expertise to cover the residential and commercial sectors. Her performance rankings climbed steadily, being SRI’s Millionaire Agent in 2021.
Jaslin Khoo, 35, SRI Pte Ltd
Jaslin Khoo has always dreamed of working hard to provide the best for her family. She would take on all obstacles positively, accompanied by her cheerful personality. The trust and opportunities given to Khoo helped her achieve the Millionaire Achiever award in 2021—her most remarkable achievement by far.
Lorraine Toh, 36, Savills (Singapore) Pte. Ltd.
Lorraine Toh currently serves as Savills Singapore’s Associate Director for Residential Services. Working hand-in-hand with her mentor, Toh focuses on prime residential assets globally. Her journey with Savills began in 2013, with her passion for real estate developing during her teenage years. She is well-versed in dealing with institutional funds, family offices, and high-net-worth individuals.
Athalia Soon, 37, PropNex Realty
A Division Branch Director and two-time Millionaire Award Winner, Athalia Soon has attained the milestones dreamt of by many within just 3.5 years in the trade. She focuses mainly on residential and is always looking to help her clients to upgrade and multiply their property portfolios. In her opinion, an achievement is when she places her client’s interests first.
Jie Ru Ng, 37, Savills (Singapore) Pte. Ltd.
Jie Ru Ng is a seasoned operator in the commercial office space market, achieving outstanding performance consistently. She was Savills Commercial Leasing’s top broker in 2020. With over 12 years of experience in the office and business park leasing market, Ng has represented tenants in renewals, relocation, and lease restructuring. Her commitment to her tenants involves lateral thinking and detailed implementation of bespoke leasing strategies to achieve optimal results which led many to become repeated clients.
Alifmirzan (Ya Alif) Bin Kamarudin, 38, OrangeTee & Tie Pte Ltd
Breaking away from the mainstream property market, Alifmirzan Bin Kamarudin chooses to serve unconventional cases in the community, providing counsel to those in need. Alif has achieved remarkable success in the industry, regularly earning a place in OrangeTee’s Top 50 Achievers Awards since 2018.
Linda Ho, 38, Mindlink Groups Pte Ltd
Since joining Mindlink Groups in 2021, Linda Ho has found favour in controlling overhead expenses as a full-time property salesperson. She has been a consistent producer, with a majority of her sales attributed to new and resale development. There, she is empowered to provide valuable market insights to her clientele. The company has revolutionised the industry’s overriding remuneration through its innovations.
Christopher Ng,
Christopher Ng has had a passion for the real estate industry since his school days, having pursued a bachelor’s degree in real estate. He is an independent agent with strong business fundamentals. He readily adapts to the fast-evolving demands of the industry. Since joining OrangeTee in 2016, he has regularly made it to the annual Top 50 Achievers list.
Lynn Ong, 39, Huttons Asia Pte Ltd
Lynn Ong started her real estate career after her graduation in 2010. Her industry knowledge allowed her to effectively assist clients in their journey. She has been a consistent Top Producer for years and earned the Huttons Millionaire title in 2021 and 2022.
Her consistency also helped her clinch Champion Producer in Huttons for the first half of 2022.
Singapore’s architecture professionals continue to create spaces that can withstand global challenges. This year, Real Estate Asia recognises 20 award-winning architecture professionals under 40 who contributed to keeping Singapore as one of the world’s best-developed cities. This year’s list consists of architects behind the Changi Airport Terminal 2 expansion, Resorts World Sentosa 2.0, and the National Centre for Infectious Disease & Centre for Healthcare Innovation. This list is arranged from youngest luminary to oldest.
Lina Heng has a keen interest in the effective design of public spaces. In Singapore’s nation-building efforts to deal with the pandemic, Lina was involved in various quick-built accommodation facilities like the Community Care Facility and Connect@ Changi, the world’s first purpose-built shortstay facility for business travellers.
As Executive Architect in Surbana Jurong, Lina was also involved in the JTC Poultry processing Hub, Singapore’s first one-stop poultry processing facility. She also worked on Temasek Shophouse, a heritage building built in the 1920s that was awarded the Urban Redevelopment Authority’s Architectural Heritage Award in 2019 and the Singapore Institute of Architects’ Architectural Design.
Architect in Surbana Jurong, and has worked on Temasek Shophouse, a heritage building built in the 1920s that was awarded the Urban Redevelopment Authority’s Architectural Heritage Award in 2019 and the Singapore Institute of Architects’ Architectural Design Merit Award in 2022. He is currently working on the extension of Temasek Shophouse, that will amalgamate the adjacent commercial conserved buildings.
David is also involved in SJ Campus, a Super Low Energy Building that will be the corporate headquarters of Surbana Jurong.
Eleanor Xu has worked on the design and project management of several projects, such as Sembcorp Marine Corporate Headquarters and other specialised buildings in shipyards. As Executive Architect in Surbana Jurong, she was also involved in several first-of-its-kind projects, such as the NUS School of Design & Environment 4, Singapore’s first new-build net-zero energy building, and a vertical aquaculture farm, the first vertical fish farm design in Singapore.
Joanne Gay is a senior associate at DP Architects. She believes that the derivation of good design is similar to solving simultaneous equations. She takes a longterm perspective to guide interim steps of design in order to achieve the final solution, which allows her to thrive in navigating complex projects. She contributes to the Healthcare architectural research and overall knowledge development of the Healthcare team for DP Architects’ offices.
Johann Lim is an associate at DP Architects. Passionate about innovative design and construction methods, he was part of the design team for the award-winning HomeTeamNS Clubhouse at Khatib, a recreational clubhouse for Singapore’s National Servicemen.
In 2016, the young architect was also involved in the RGB Pavilion that won Archifest’s pavilion competition.
Melvin Tan embarked on his architectural journey with DP Architects in 2014. He has been involved in designing and executing projects of various scales, including master planning, mixed-use development, and showflat construction since joining the design practice. His core interest is in residential projects, actively participating in residential feasibility studies, and conducting research on residential design trends, particularly in areas that focus on design, code, and technical aspects. Tan currently leads the team for Dairy Farm Residences—one of 13 URA prefabricated, prefinished volumetric construction residential land sales.
Jean Cheong is a senior associate at SAA Architects and is a highly motivated professional who actively pursues new skills and knowledge. She is currently leading the Bulim Infrastructure Phase 2 project and has led several multi-stakeholder teams to develop and manage some of the more complex projects along Singapore’s skyline.
Her background in architecture and real estate enables her to communicate effectively and understand many of her clients’ business perspectives, whilst her experience in contract administration and dispute resolution helps her to effectively deliver a range of projects.
is
in SAA’s design team. He has led numerous feasibility studies, competitions and building designs both in Singapore and overseas; he has also worked on various typologies.
He previously designed several projects across Europe and Africa before relocating to China, and finally Singapore. This broadened his exposure to different architectural and working styles.
Arnal was instrumental to many of SAA’s successful bids, including Woodlands Health Campus and the design of 10 underground MRT stations in Kuala Lumpur.
A&A and tenancy works.
Ein advocates biophilic and sustainable design in his work and serves on the Singapore Institute of Architects Sustainability Committee.
Some of the high profile projects he has been involved in include Changi Airport Terminal 5, a 180,000 sq m biomedical business park development at Science Park Drive, and a 117,000 sq m multi-use ramp-up industrial factory at Ang Mo Kio. He is leading and has secured AEI projects within ION Orchard.
Swan & Maclaren Architects’ Malaysia,
China, and Africa geographic segments. With more than 12 years of experience, Hung Seng is jointly responsible for award-winning projects like the Station Façade Design for MRT Corp which won first prize at the RTS Link Station Façade Design Competition in 2020.
Hung Seng advocates a holistic design approach that considers the many facades and opportunities that shape a robust development experience.
Kwan Yeong Kang is a multi-disciplinary architectural strategist and a studio leader for Swan & Maclaren Architects’ Singapore and Philippines geographic segments.
His expertise spans various industries, typologies, and sizes — from new high-rise residential towers, hotels, and hospitals to familiar and intimate workspaces. He is jointly responsible for award-winning projects like Shanghai Raffles Hospital (China) for Raffles Medical Group, which won a Merit Award in 2021.
Stephen Lim is a senior associate at RSP Singapore and a registered architect with over 13 years of experience under his belt. At RSP, he is a key member spearheading the rejuvenation of Changi Airport Terminal 2 and Loyang Station.
He was also the lead architect for Canberra Station and one of the main architects for the Changi Airport Terminal 1 Expansion project. He obtained both his Bachelor’s and Master’s Degrees in Architecture at the National University of Singapore.
Having spent his formative years in Kuala Lumpur, Singapore, and Melbourne, RSP Singapore senior associate Teik Rong Khoo believes that great design lies at the intersection of craft, value-proposition, and collaboration.
He joined RSP in 2009, where he was a part of the design team that participated in many competitions and projects. He obtained his Master’s Degree in Architecture at the University of Pennsylvania.
Teik Rong Khoo currently oversees RSP’s projects in Cambodia and has been involved in other local jobs.
segment. As a pragmatic Architectural lead, he integrates and orchestrates the Swan & Maclaren satellite offices in Ho Chi Minh and Hanoi to ensure deliverables are of quality and in their desired trajectory — on time, and within budget.
In less than seven years, Usman and his team delivered award-winning design solutions such as the Riverbay Vinh Yen for Song Hong Thu Do Group, which clinched a Gold Award at the Vietnam National Urban Planning Award in 2021.
A strong believer of form follows function, Joanne Ng’s design is guided by the desire to connect intricate spaces with people whilst being mindful of the economic and ecological impact of the built environment. This has enabled her to tailor architecture across typologies and scale that best fits the client’s vision and end-users’ need.
The senior associate at DP Architects leverages the power of technology to execute her design explorations. Upon graduation, she remained in her university to complete two research projects, focused on carbon footprint calculation in Singapore.
Ong is a
at
Singapore and a registered architect. With over 13 years of experience over various typologies, she is key to the architectural execution for the One Pearl Bank, the tallest residential development in the OutramChinatown district. She obtained both her Bachelor’s and Master’s Degrees at the National University of Singapore.
Ong has also participated in multiple competitions. She shared that she sees the bigger impact of architecture today and how it can bring cities alive.
Atthaphon Bunya is a Thai Architect registered with ACT (Architect Council of Thailand) and ASA (The Association of Siamese Architects). His over 14 years of experience helped to deliver various residential, institutional, recreational, hospitality, religious, hotel, commercial, mixed-use and master projects.
The associate director and senior architectural executive of Swan & Maclaren (Thailand) has worked with commercial, entertainment, retail, and hospitality clients, including China LESSO, Samanea, and Hong Lai Huat Group.
Doreen Koh is currently a Vice President at CPG Consultants. Joining the company as an architect, Koh has been actively involved in several healthcare projects. Her current role as a project architect for several research projects requires leading in design development and management.
She was a key design team member of Ng Teng Fong General Hospital and has continued to apply the acquired healthcare knowledge by participating in ongoing design competitions, research and
Angel Neo Kae Yan is currently the Vice President for CPG Consultants, Healthcare Division. She has 15 years of experience, focusing on feasibility studies, masterplanning, design and project management of various healthcare facilities as well as health-oriented developments.
She was involved in medium-sized aged care facilities and medical centres to largescale health-oriented development projects around China, United Arab Emirates (UAE),
at DP Architects and a registered architect. He was involved in River Wonders (formerly River Safari), Asia’s first river-themed animal attraction. He also saw the completion of the first phase of a well-loved recreation and leisure development of Downtown East.
is an
Currently, Tan is the Superintending Officer’s Representative for the new five-storey SAFRA Clubhouse at Choa Chu Kang Drive, Singapore, which is targeted for completion in Q1 2023. He was also the Design for Safety Professional for the award-winning
18 Doreen Koh, 39, CPG Consultants Pte Ltd
19 Angel Neo Kae Yan, 39, CPG Consultants Pte Ltd
Tan Kok Ming
Associate Director
20 Tan Kok Ming, 39, DP Architects Pte Ltd
NUH Masterplan
West Coast Link Nursing Home
With the multiple lockdowns, travel restrictions, and economic burdens brought about by the pandemic, the real estate industry has definitely faced obstacles over the years. Despite these challenges, however, exceptional real estate businesses have proven that no hurdle can hinder progress and major success for their enterprise.
Presented by Real Estate Asia, the prestigious awards programme pays tribute to real estate businesses surpassing unforeseen circumstances and producing honourable innovations that stood out in the property market.
The winners were introduced through a virtual awards presentation
Luxury Residential Development of the Year - Oman Marketing & Brand Initiative of the Year - Oman
Alveo Land
Developer of the Year - Philippines
BRG Group Developer of the Year - Vietnam Hotel Development of the Year - Vietnam Luxury Residential Development of the Year - Vietnam
CapitaLand Investment Strategic Partnership of the Year - Singapore
Chinachem Group Developer of the Year - Hong Kong ESG Initiative of the Year - Hong Kong Redevelopment of the Year - Hong Kong
Dahua Group Australia Masterplan Development of the Year - Australia
Filinvest REIT Corporation Office Development of the Year - Philippines REIT Initiative of the Year - Philippines
Frasers Property Industrial (Thailand) Company Limited Industrial Development of the Year - Thailand
Henderson Land Development Company Limited Sustainable Development of the Year - Hong Kong Mixed-Use Development of the Year - Hong Kong
HOMEVEST SDN BHD
Employer of the Year - Malaysia
Metrostar Realty and Development, Inc. Mid-sized Residential Development of the Year - Philippines
Phat Dat Real Estate Development Corporation (Vietnam) Residential Development of the Year - Vietnam
The Instant Group Flexible Workspace Initiative of the Year - Philippines
in June 2022. The winners were also given the opportunity to speak about their accolades through an exclusive virtual interview.
The winning entries were deliberated by real estate industry experts, namely, Hong Beng Tay, Partner, Head of Real Estate Sector, KPMG Advisory LLP; James Allan, Regional Director and Country Head, JLL Indonesia; Stuart Porter, Private Equity, Financial Services & Real Assets Asia Real Estate Tax Leader, Partner, PwC Tax Japan; and Michael Velten, Southeast Asia Investment Management and Real Estate Sector Leader, Deloitte.
Congratulations to all the winners! Below is the list of Real Estate Asia Awards 2022 Winners in their respective categories:
International Partner, Asia, Charles Russell Speechlys
REEM AL MAHROOS
Senior Associate, Charles Russell Speechlys
As one of the most severely impacted industries as a consequence of the COVID-19 pandemic, this operational crisis is, ironically, a welcomed relief and a sign that the industry is well on track to recovery.
From an Asia-Pacific perspective, the region has seen a significant easing of border restrictions, with most markets reducing quarantine periods and others taking more prominent steps to remove quarantine restrictions altogether such as Vietnam, Indonesia, Singapore, and the Philippines. Indeed, Thailand has just downgraded COVID-19 to the same level as influenza.
Even in Hong Kong, which has up until now had some of the world’s most severe quarantine rules, there has been a welcomed easing of restrictions. The recently implemented ‘3+4’ quarantine scheme is broadly welcomed as a step in the right direction by the travel sector and follows hot off the heels of the Hong Kong SAR government halting its Covid-19 flight suspension mechanism.
As a result of the above, there is no doubt that the trend of ‘revenge tourism’ has already benefitted large parts of the Asia-Pacific region with other destinations such as Hong Kong and Mainland China also anticipating the inevitable ‘revenge travel’ boom to reflect the easing of border restrictions.
As the hotel and hospitality sector continues to recover across the Asia-Pacific region, we wanted to highlight some other sector trends we have identified from working on a number of projects during the pandemic period.
The demand for environmental and sustainable travel by consumers has continued to accelerate. Corporate awareness and regulatory requirements have also carved ESG as an important trend in the industry. We anticipate more eco-centric brands to emerge within the Asia-Pacific region and hotels will likely incorporate green and wellness elements as a key offering.
Owners should consider the management structure and operating agreements carefully. Regional and international operators may seek to include enhanced obligations around committing to sustainable development and operational practices, imposing obligations to use particular suppliers (or prevent the use of others that do not have sufficient ESG credentials) as well as including additional budgets / contributions such as social, conservation or development funds.
Finance and the Role of Private Equity Banks have been working closely with hotel owners over the past two and a half years to restructure debt across the hotel and hospitality sector, which has been badly affected by the impact of Covid-19. Those lenders are revaluating their portfolios and, going forward, will likely be more selective about the type of assets they are financing as well as the borrower’s profile.
We anticipate higher LTVs (loan to value) and / or lower debt service cover ratios. Accordingly, we expect private equity to play an increasingly important role in financing hotel acquisitions and/or required capital expenditure. Private equity as well as private capital more generally, is likely to be agile and not as constrained as the more rigid debt-financing structures.
Linked to ESG, we also anticipate a rise in green and sustainability linked finance in the Asia-Pacific region as both lenders and corporations strive to embed ESG within their practices. In CBRE’s Asia-Pacific Market Outlook 2022, they reported growth in green loans across the region and highlighted a number of noteworthy deals including a USD 160m green loan secured by Hong Kong and Shanghai Hotels Limited and granted by HSBC as well as a USD 299 million green load secured by Worldwide Hotels and granted by Maybank Singapore.
Owners of existing and prospective hotels seeking to benefit from private equity funding or green financing still need to consider their agreements, as hotel operating agreements typically contain a number of restrictions and requirements when it comes to changes of control in relation to the owner’s corporate structure or in relation to the ability to raise financing.
The use and integration of guest-facing and back-office technology within the hotel and hospitality industry has accelerated over the past 2 and a half years as a solution oriented response to Covid-19. Owners have had to inject additional capital expenditure to upgrade hardware and software including virtual check-in and guest management platforms, QR codes as well as tools to manage the hotel and interpret data more efficiently.
We anticipate a continued investment in technology as brand standards evolve to improve customer experiences and to manage other challenges in the hotel and hospitality industry such as employee shortages. Owners of existing hotels may be required, pursuant to their hotel operating agreements, to deploy additional funds to meet operator requirements. Owners of prospective new hotels should consider negotiating ‘freeze periods’ with operators to minimise additional capital expenditure for a period of time (typically 3 – 5 years) following the opening of the hotel to avoid being materially affected by these fast-paced changes.
Hotels assets are seen as a better hedge against inflation than other types of property assets. The reason for this is that the operator has the ability to regularly revise room rates and other revenue streams to take into account inflation. This is not the case with, for example, a commercial office lease where the rent is usually set for at least 1 year if not considerably longer without the ability for it to be revised.
Increasingly, the real value of property will no longer be defined solely by the space and its location, but the convergence of infrastructure and technology-enabled real estate service models.
This complexity is further compounded by the profound impact of the pandemic on specific elements of the real estate sector – in particular, accelerated digital transformation, and an intensified demand for companies to tackle environmental, social, and governance (ESG) issues – that will likely require a lasting course correction.
In this article, we explore three trends that CRE leaders in Singapore should deliberate on as they proceed into 2022 – and some of the considerations that they should take to set the foundation for their success over the next several years:
With guarded, if not solid, expectations for revenue growth in 2022, many CRE leaders are looking to accelerate their investments in technology and innovation. Based on our observations, key digital priorities include, amongst others, portfolio analytics, artificial intelligence (AI), robotic process automation (RPA), geospatial insights, and the use of alternative data.
For a significant number of CRE companies, however, implementation of these advanced capabilities remains in the early stages, not least because legacy systems continue to hinder adoption. To move ahead, CRE companies will need to focus on their transition to the cloud as a clear top priority, and work to develop a well-defined digital transformation roadmap – one that redefines business processes, job roles, and skill requirements to embed the use of technology and tools.
Other common roadblocks faced by CRE companies also include issues relating to the complexity of technology implementation, and lack of necessary talent. To overcome these challenges, CRE leaders could consider leveraging the use of partnerships with third parties, including technology providers or PropTech players, as the way forward.
In a digital world of bits and bytes, the value of real estate for businesses will increasingly be determined by a different yardstick, and CRE leaders will need to consider a mindset shift in the way they engage with tenants, end users, investors, and developers. Enter Real Estate-as-a-Service (REaaS), an approach which combines strategy, technology, and data to deliver digital and physical services – not just spaces – to tenants and users.
Broadly, an REaaS model is one that combines and cross-leverages smart building capabilities across systems, enabling a flexible yet comprehensive infrastructure to support end-user requirements under one roof. This fundamentally changes the business model of property owners, who are now in the position to become service providers as custodians of physical and digital infrastructure.
In order to fully exploit the potential offered by REaaS, however, CRE
MICHAEL VELTEN Real Estate Tax Partner, Deloitte Singapore JUNWEI HAN Financial Services Tax Senior Manager, Deloitte Singaporecompanies will need to double down on their investments in smart building enhancements, including sustainable and energy efficient properties, dynamic building designs, and flexible leasing models.
To avoid the common pitfall of implementing separate, point solutions that provide limited benefits out of their core functionality, CRE leaders should also consider the development of a digital roadmap and platform strategy – one that can act as the architectural design for the implementation of cohesive, customisable, and scalable solutions within connected smart building ecosystems.
Trend 3: Stepping up to ESG ESG issues have emerged as a top focus in recent years, and CRE companies need to step up to meet investor, tenant, and employee expectations. Given the carbon-intensive nature of the sector, climate change, in particular, has become an urgent matter of priority: according to the non-profit environmental advocacy group Architecture 2030, buildings are responsible for nearly 40% of annual global carbon dioxide emissions.
Across the board, CRE companies are exploring a number of different options to make an impact. These include, but are not limited to, collecting and assessing data on the environmental impacts of building operations, investigating and implementing resource efficiencies, and collaborating with developers on the use of sustainable practices and materials.
Such ESG-driven initiatives are not only the right thing for CRE companies to do, but are also a means to drive new business opportunities and create a competitive edge. For example, recent statistics from a survey conducted by JLL revealed that about seven in 10 companies in the Asia Pacific region are now willing to pay a premium for rental leases in sustainability-certified buildings.
In Singapore, momentum for change is already well underway. With growing investor demand to integrate ESG criteria into investment portfolios, we have observed rising interest in sustainability-linked real estate investment trusts (REITs) on the back of the launch of the world’s first green REIT derivative and first Asia Pacific green REIT exchangetraded fund on the Singapore Exchange (SGX).
From a regulatory perspective, notable recent local developments also include the SGX Regco proposed roadmap for climate-related disclosures to be made mandatory in issuers’ sustainability reports, as well as its consultations with stakeholders on the requirements for assurance of sustainability reports and one-time sustainability training for all directors.
With the move towards more regulated disclosure, CRE companies will need to consider more rigorous governance and controls around their ESG accounting and reporting. These include, for instance, designing and implementing processes to track progress and accountability for target metrics, creating a roadmap that establishes and documents ESG strategy as part of the broader business strategy.
