Views on the ‘new normal’ in real estate
Head of Real Estate Research - Real Estate Sydney, Australia
In this paper, we share some of our views on navigating the 'new normal' in real estate. A summary of some highlights in this paper include:
- COVID-19 will permanently transform the way we shop, work and play.
- Markets that flatten the curve sooner will rebound quicker.
- Sectors aligned to online fulfillment, wellness, household consumption and flexibility are well placed to prosper in the wake of COVID-19.
- Core, long WALE strategies will likely dominate capital flows, as investors turn increasingly defensive.
- Core logistics will grow as the investment market favourite, as investors lift allocations to the sector.
- The office of the future will be spacious, wellness focused and more flexible, to accommodate greater workforce mobility.
- Retail and consumer spending will cool, while e-commerce competition will sharply accelerate.
- Logistics fulfillment and inventory led by online household good demand looks set to drive strong demand story long term.
- Defensive alternatives such as medical office and multifamily will be compelling as “next gen core”.
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Important notes
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While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.
This article is not intended for distribution or use in any jurisdiction where it would be contrary to applicable laws, regulations or directives and does not constitute a recommendation, offer, solicitation or invitation to invest.