Trends by sub sector (5 slides - 23h59).pptx

Impact covid for property sector

1. Impact on office sector overall_0_132332415063381418 columns_1_132332385505970446 4_1_132332385880153004 7_1_132332416245602914 Details Impact Impact Duration Impact level Impacted stakeholders Mass layoffs and forced unpaid leave followed by slow economic recovery results in lower employee density per office Companies are downgrading their office size due to lower number of employee resulting in lower demand for office space Semi-permanent Commercial developers, tenants Compression in price for tenant-heavy office market where high supply of office space are met with shrinking demand Semi-permanent Accelerated shift to remote work means that o ffice could be reimagined as “brand and culture hub” only, where people comes to hold large meeting and conduct training Reduction in need and size for permanent central office as it does not need to accommodate all employee at once resulting in lower demand for office space Permanent Commercial developers Higher adoption of co-working space as companies might want rental flexibility to accommodate hybrid working arrangement Permanent Commercial developers Increased number of smaller satellite offices where individual can choose to work from based on closer proximity to home Permanent Commercial developers, employees Higher emphasis on digital connectivity and technological tools in redesigning shared space Upgrade existing office building with technology to attract new tenants (e.g. facial recognition/motion sensors to open doors) Permanent Commercial developers Increased importance on environmental sustainability in development Demand for energy efficient and healthier office building (e.g. opening blinds to admit natural daylights, better airflow) Permanent Commercial developers Preference for shorter commute where people can live, shop and work within compact vicinity Increased number of smaller satellite offices where individual can choose to work from based on closer proximity to home Permanent Commercial developers, employees Economic downturn Demand for digital connectivity Sustainable development Self sufficient clusters preliminary D igital trend Property specific trend Others E conomic trends

2. Impact on retail sector overall_0_132332415063381418 columns_1_132332385505970446 4_1_132332385880153004 7_1_132332416245602914 Details Impact Impact Duration Impact level Impacted stakeholders Drop in discretionary spend resulting in decline of sales for retailers Short term reduction in rental income for commercial developers and operators Temporary Commercial developers, retailers Retailers are moving away from physical outlet to reduce rental cost resulting in lower demand for commercial retail space Permanent New landscape as pandemic are affecting brands differently Change in tenant mix as few retailers will consolidate, and many specialty stores and independents no longer exist Permanent Accelerated shift of customer behavior towards online purchases Increase demand for warehouse space as e-commerce continue to gain (might change portfolio mix for developer) Permanent Commercial developers Retailers are moving away from physical outlet resulting in lower demand for commercial retail space Permanent Commercial developers, retailers Transition of malls from commoditized shopping experience to provider of leisure and entertainment Permanent Higher emphasis on digital connectivity and technological tools in redesigning shared space Adoption of technological tools to upgrade offline customer journey in retail area (e.g. parking sensors, mobile apps for guide) Permanent Commercial developers Increased importance on environmental sustainability in development Higher demand to incorporate environmental sustainability consideration to retail spaces (e.g. installing plants and trees, open and fully integrated landscape) Permanent Commercial developers Inclusive space for SME Change in tenant mix and business model arrangement to dedicate areas for UMKM Permanent Commercial developers Preference for shorter commute where people can live, shop and work within compact vicinity Increased demand for mixed-used development where people can live, shop and work within walking distance in the same compound Permanent Commercial developers, city planner Economic downturn Shift towards e-commerce preliminary Changing jobs & industry composition Demand for digital connectivity Sustainable development Self sufficient clusters D igital trend Property specific trend Others E conomic trends Social-economic inclusivity

3. Impact on residential sector overall_0_132332633419843797 columns_1_132332385505970446 4_1_132332385880153004 Details Impact Impact Duration Impact level Impacted stakeholders Drop in household income resulting in decline of purchasing power and spending size on residential Growth in demand of affordable housing options for consumers with significantly depleted asset-base post-COVID adding to excessively high existing house price to income ratio Semi-permanent Developers, government Increased demand for rentals as people look for alternative to home purchase due to lost of income Semi-permanent Developers, rental landlords Difficulties in obtaining mortgage as banks are becoming more conservative in deploying loans Drop in number of transactions for residential purchases due to lack of access to financing post-COVID Semi-permanent Developers Employees have options to fully or partially work from home Reduced importance of office proximity in decision of where people choose to live Permanent Developers Higher emphasis on digital connectivity and technologies IoT is ubiquitous at homes with rising demand of “s mart home” Permanent Developers Increased importance on environmental sustainability in development Emphasis on sustainable construction and energy efficient housing (e.g. solar powered electricity for home) Permanent Developers Shift towards verticalization over horizontal growth for more efficient land usage and greater emphasis on green space Permanent Developers, government Inclusive development for lower income residents Upgrade informal settlements so lower income residents can get access to sanitation (e.g. clean water, wash basins) and health facilities Optimize approval process to help clear supply backlog of homes Permanent Developers Preference for shorter commute where people can live, shop and work within compact vicinity Demand for residential location in self-sufficient built-in communities with easy access to required amenities Permanent Developers, government Economic downturn Demand for digital connectivity Sustainable development preliminary D igital trend Property specific trend Others E conomic trends Social-economic inclusivity Self sufficient clusters

4. Impact on property sector in general (1/2) overall_0_132333808110351256 columns_1_132333802747550843 preliminary D igital trend Property specific trend Others E conomic trends Details Impact Impact Duration Impact level Impacted stakeholders Steep economic slow down affecting market liquidity Demand for property sector will slow down in general as household income decreases Temporary Developers Delay in development schedule and construction progress driven by raw materials supply disruption and mobility restriction Temporary Developers, investors, tenants Difficulties in obtaining financing and delayed receivables collection might causes short-term cash flow issue Temporary Developers, investors Higher emphasis on digital connectivity and technological tools in redesigning shared space Move towards automation to mitigate contagion of future pandemic and increasing demand for hygiene (e.g. automatic doors, voice activated elevators, temperature screening) Permanent Developers Increased importance on sustainability in development Increasing pressure to develop energy efficient building using sustainable materials and providing green and open space Permanent Developers Trend towards compact development fo r energy efficiency and more green space Migration from horizontal development to verticalization to build a more compact lifestyle and efficiently use the landbanks Permanent Developers, government Preference for shorter commute where people can live, shop and work within compact vicinity Increased demand for mixed-used development where people can live, shop and work all within walking distance in the same compound Permanent Developers, government Economic downturn Sustainable development Self-sufficient clusters Demand for digital connectivity

5. Impact on property sector in general (2/2) overall_0_132333808110351256 columns_1_132333802747550843 preliminary D igital trend Property specific trend Others E conomic trends Details Impact Impact Duration Impact level Impacted stakeholders Pandemic/ epidemic management is factored into future design and development Change in design of buildings to promote healthier space (e.g. greater natural lights, advanced ventilation, incorporation of greeneries, balconies, etc) Permanent Developers Leverage data and AI based sensors for better city life management Adoption of smart city technology and network becomes more essential to allow for remote monitoring and operations Permanent Government Use of technology and big data for disease monitoring and surveillance Permanent Changing demand for property sectors requiring faster turnaround time to fill backlog Re-evaluate standard specification for property development Permanent Government Wider adoption of prefabricated construction method to speed up construction time Permanent Developers Smart city/IOT adoption Pace of construction Crisis management