This is amidst GDP growth in economies and control of local virus situations.

The local trading performance rebounded strongly over the first two months of 2021 by 32.5% on GDP growth in some Asia Pacific economies, as well as control of local virus situation, according to a report by Savills.

Air cargo throughput was the first to benefit and recorded a 17.5% increase in January and February this year, whilst container throughput only declined moderately by 2.4% over the same period.

The leasing market was active over the quarter with a number of major relocations and renewals recorded, with warehouse vacancies falling heavily to 3.1% as a result. Modern warehouse landlords again reacted fastest with some rental increments seen as available space was quickly snapped up.

The warehouse leasing market should continue to benefit from a recovering trading and retail performance as well as sustainable growth in e-commerce, both in the local market and cross-border.

“Investment sentiment remained positive with a few major deals concluded in Q1 2021, and prices have stabilised after months of decline. Looking ahead, favourable government policies supporting redevelopment, as well as the high yields on offer should continue to attract developer and investor interest throughout the rest of the year,” said Simon Smith, Savills regional head of research & consultancy, Asia Pacific.