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RESEARCH • 30 June 2020
Secular trends in Asia favouring logistics: a strong buy opportunity
The logistics sector in Asia-Pacific is benefitting significantly from digitalisation, demographics and changing consumer behaviours.
- As governments around the world seek to reopen economies and exit lockdowns, expect changes in how we work, live and consume. Not everything will be the same and, in this context, the evolutionary trends in e-commerce are only going to accelerate. The logistics sector will be a key beneficiary.
- Heightened risks around deglobalisation, rising global trade-war tensions and the growing need for diversification of the global supply chain will result in the requirement for more onshoring of logistics real estate in Asia-Pacific.
- Ongoing trends in door-to-door delivery are only likely to strengthen, bringing the various types of logistics even more into focus for investment.
- COVID-19 will push the real estate industry closer to a future where digitalisation and technology is highly integrated with real estate. The logistics sector in Asia-Pacific is expected to benefit significantly from digitalisation and modernisation supported by changing consumer behaviours and demographics. Businesses should take into consideration the new norm, which would hasten structural changes and investment convictions.
- We remain a strong buyer of logistics formats and would recommend investors to embrace various risk profiles that lead to buying opportunities.
