Coronavirus: could empty offices help fix Asia’s housing shortages?

With more people working from home during the Covid-19 pandemic, schemes to convert commercial spaces to residential have been accelerated

But it’s easier and cheaper to convert hotels and serviced flats into residences, and there can be negative social consequences

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As governments around the world have imposed movement restrictions during the pandemic, developers and authorities are contending with fewer workers in offices. Photo: Reuters

Published: 8:00am, 2 Dec 2020Updated: 9:01am, 2 Dec 2020

The coronavirus pandemic has increased pressure on governments to address shortages in housing and allowed authorities more freedom to convert empty offices, urban experts said on Tuesday.

Last month, the South Korean government said it will add 114,000 homes for public housing within the next two years by buying empty hotels and offices and converting them into residences.

Singapore is pushing a plan to redevelop old offices in its central business district (CBD) with new incentives for converting excess car park spaces into residences, shops, restaurants and indoor farms.

“Governments and developers across the region are looking at converting commercial space into housing,” said Justin Eng, an associate director of research at real estate consultancy Knight Frank Asia-Pacific, adding that it is still only “sporadic”.

“These trends had been in motion prior to Covid-19, but have now been accelerated,” he said, with incentives from the government an added benefit.