CBRE Asia Pacific Research conducted a flash survey of over 250 occupier clients, from 23 March to 5 April 2020 to gauge the industry response to the COVID-19 outbreak.
The economic impacts of COVID-19 outbreak have weighed heavily on business sentiment in Singapore; 69% of Singapore respondents expect the business environment to deteriorate in H2 2020.
76% of Singapore respondents expect revenue to contract in 2020, with most of them expecting a contraction between 10% to 30%.
69% of Singapore respondents’ leasing decisions were impacted by the COVID-19 outbreak. This placed expansion plans on hold, including site visits.
92% of respondents were quick to implement remote/home working after the COVID-19 outbreak. This is likely to have an impact on long-term occupier strategy such as investment in technology to support remote working, and adoption of flexible working arrangements at the workplace.
As a form of Business Continuity Planning measure, at least 2/5 of Singapore respondents intend to review their consolidation strategy to mitigate over-concentration risk and consider splitting teams across multiple buildings.