Office
The pandemic is increasingly under control and government is likely to soon declare it over. More companies will require their employees to return to their offices to work, whilst some may continue to adopt hybrid working systems. Enquiries for office space are likely to improve despite forecast moderate growth. Nevertheless, vacant spaces left over due to downsizing activities have yet to be absorbed and still put great pressure on landlords who will need to adjust to flexible rental packages.
Apartment
Market optimism abounded in the early 2022, especially with more business activities opening up, but challenges in the property market remain. Several key factors are still impacting the market, these mainly being geopolitical instability, supply chain disruptions and the threat of higher inflation impacting the cost of living. With the current economic headwinds taking a toll on the property sector, overall growth will be limited this year, thus we expect apartment sales to remain at around the same level as in 2021.
Retail
The existence of exhibitions, entertainment and events gradually helped increase mall visitation. More people and retailers returned to the malls. However, this has yet to impact occupancy costs particularly for malls that are still registering low occupancy. In addition to that, an unstable economic projection continues to put pressure on retail businesses. Fuel hikes very likely will have a domino effect on increasing production and operational costs. The increasing costs will have an impact on goods prices and very likely will decrease purchasing power.
HotelThe Q3 2022 seems to have achieved the peak of performance throughout 2022. Domestic and international travel regulations have become more relaxed, businesses have started taking off, and, most importantly, offline activities have resumed. This is not only pushing room occupancy upward, but it’s also driving a moderate increase in the use of meeting rooms. The fear of global inflation and recession might create uncertainties in the hospitality industry, probably within the next year, but this year, most stakeholders in the hospitality industry will push the hotel market to perform better than last year.
