Property market on ‘cusp of full recovery’ in 2022: JLL

Across submarkets, retail will have the strongest growth next year.

The property market will be on the “cusp of full recovery in 2022,” JLL said in its Year-end Property Market Review and Forecasts report.

Across submarkets, the analyst said retail will have the strongest rental and capital value growth.

JLL said they expect vacancy rates of High Street shops and Prime shopping centres to improve further in 2022, with rents rising 5-10% and 0-5%, respectively.

Apart from retail, the analyst also expected increases in the office market, residential market, and investment market.

For the office market, the analyst expects rents to rise 0-5% in 2022 since they also expect the vacancy rate to edge higher given the “considerable amount of new office supply slated for completion.”

The overall vacancy rate in November was 9.6%, lower than the 9.8% recorded in September. 

Meanwhile, gross leasing volume is also expected to improve next year “as more tenants reconfigure their real estate requirements,” JLL added.

In the residential market, JLL expects capital values of mass residential to rise by 4.4% in 2021, and stay “firm” and grow 0-5% in 2022. 

JLL also foresees a climb in capital values of luxury residential by 0-5% in 2022. 

Sale transactions, meanwhile, is expected to reach their highest volume since 2013 next year if the average monthly transaction will continue to increase.

In the first 10 months of 2021, residential sale transactions surged 28% to a monthly average of 6,374 deals.

Meanwhile, JLL said mortgages rates will remain low in 2022. 

In the investment market, JLL said hotel assets and aged buildings for cumpolsary sale will remain the focus of investors.

“The sales momentum of industrial properties is expected to moderate as the capital values have been lifted considerably by strong capital inflows this year. Capital values of industrial properties are expected to climb 0-5% in 2022,” JLL said.