While property values have so far been slow in responding to the virus-related fallout, economic indicators suggest that occupier demand took a hit in Q2. As a result, we think that it is only a matter of time for a repricing of property, with all-property yields rising by around 30bps this year. But given that lockdown measures are slowly being eased across the region, we think that the pick-up in economic activity, albeit gradual, in the second half of the year will support occupier demand. And, against the backdrop of loose monetary policy, we forecast the rise in property yields to partially unwind over the next two years.
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