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Singapore is the top source of global cross border capital for the industrial and logistics (I&L) sector, while Japan ranked fourth after Canada and the UK.

Japan and Australia are among the top 10 global destinations for cross border capital investments in I&L.

Colliers’ latest Global Capital Markets Insights and Outlook: Industrial & Logistics Report further reveals that US$26 billion worth of industrial assets have been sold across Asia Pacific year-to-date (Sept 23), with most transactions done in China, Australia, South Korea and Japan.

Despite current economic headwinds and constraints on airline seat availability, hotel performance in Asia Pacific has continued to improve in 2023.

The recovery continues to be largely driven by domestic demand, although the return of mainland Chinese tourists at the beginning of 2023 has started to trickle into neighbouring markets with greater velocity in the past quarter.

The strong performance of hotels over the past 12 months relative to other asset classes, combined with the cyclical recovery and the nature of inflation hedging, is ensuring that investor appetite for operational real estate, such as hotels, continues to strengthen. Assets in tier I countries (Australia, Japan and Singapore) alongside resort markets are performing especially well.

This report was originally published in https://www.cbre.com/insights/reports/2023-asia-pacific-hotels-hospitality

Q3 2023 Singapore Figures report provides the latest commentary and data on net absorption, rents, vacancy, supply and other key metrics in Singapore’s office, business parks, retail, residential and industrial markets, along with an analysis of real estate investment activity.

Executive Summary

Office: Year-to-date, Core CBD (Grade A) rents have increased by 1.3% in 2023. There was positive net absorption of 0.11 mil sq. ft., as compared to a more modest level of 0.03 mil sq. ft. in H1 2023.

Business Parks: Demand for business parks continued to moderate as leasing sentiment turned cautious. Rest of Island rents registered its first quarter of decline since Q1 2021.

Retail: Prime islandwide retail rents rose at a faster clip in Q3 2023 (1.4% q-o-q), compared to 0.8% q-o-q in Q2 2023.

Residential: New home sales slowed despite a larger number of new projects and units launched. Following the fall in overall private housing prices in Q2 2023, prices rebounded.

Industrial: Despite the economic headwinds, prime logistics rents have grown by 11.7% year-to-date, as limited supply of prime logistics space was met with strong leasing demand.

Investment: Preliminary real estate investment volumes in Singapore for Q3 2023 surged 93.4% q-o-q (-13.5% y-o-y) to $7.044 bn, mainly on public (mostly residential) land sales. Excluding these sites, investment volumes would be down marginally by 2.5% q-o-q.

This report was originally published in https://www.cbre.com.sg/insights/figures/singapore-figures-q3-2023

Investors have long-sought after real estate for price appreciation, inflation protection and diversification.

There are a variety of ways to access real estate, including the private route, direct investment in brick-and-mortar properties, debt investments backed by real estate, publicly traded Real Estate Investment Trusts (REITs) and securities, and securitised fixed income instruments. Arguably the most optimal approach is to combine these approaches’ complementary benefits by following what CBRE terms as the ‘Four Quadrants’ approach.

The Four Quadrants approach involves four primary investment conduits through which institutional investors can obtain exposure to commercial real estate. These are:

  • Private Equity
  • Public Equity
  • Private Debt
  • Public Debt

This report reviews the Asia Pacific real estate investment landscape across these four quadrants, and shares insights on potential opportunities and strategies for investors.

This report was originally published in https://www.cbre.com/insights/reports/asia-pacific-four-quadrants

Explore the Q3 2023 report on India’s commercial office and residential sectors. Commercial leasing hits 16 MSF, while the residential market maintains robust sales, but affordable housing demand decreases.

  • Residential demand in Q3 2023 trended up significantly to 82,612 units, 12% higher in YoY terms and 7% higher compared to the preceding quarter.
  • It is particularly noteworthy considering that it also constitutes an almost six-year high in quarterly sales volumes. Sales traction was higher across all markets in YoY terms.
  • Price levels have also grown in tandem with demand across all markets in YoY terms. Price levels in Hyderabad saw the most significant rise at 11% YoY as focus increasingly shifts toward the development of premium high-rise properties.

A fast-evolving landscape of geopolitical tension, elevated inflation, rising interest rates, and shifting policy developments presents both challenges and opportunities for investors navigating a wave of transformative change in international asset classes. In particular, as investment funds move to revise their strategies, the dynamic real estate (RE) markets of the Asia Pacific (APAC) are now drawing increasing attention, as managers seek to tap their historically strong track record for growth as well as their potential for portfolio diversification at a time of rising levels of market risk.

This report was originally published in https://www.capitaland.com/en/about-capitaland/newsroom/Perspectives/2023/Benefits-of-Diversity-APAC-Role-in-Investment-Portfolio-Growth.html

  • Worries about artificial intelligence (AI) supplanting knowledge workers have created more pain for the office market.
  • A broader view on the economic impact of AI should consider possible positive impacts.
  • AI could boost worker productivity and economic demand — and thus demand for other types of commercial real estate.

In Colliers’ latest report Global Capital Markets: Insights and Outlook – Global Capital Flows, Singapore tops the list of biggest global spenders so far in 2023 followed by the US. The Lion City, with cross border capital investments worth USD 21, 840 million in H12023, now represents around a quarter of the total investments and is three times bigger as a spender this year versus Canada in the third position.

Hong Kong and Japan stood out as the fourth and fifth largest source of cross-border capital, spending USD 6,508 million and USD 5,151 million respectively in the first half of this year.

The region came out equally strong as an investment destination. Japan, China, Australia and Singapore are among the top 10 investment destinations globally with healthy investment growth seen across each of these markets.

CBRE’s 2023 Global Occupier Sentiment Surveys feature insights from more than 400 corporate real estate executives across multi-national and domestic companies around the world. Their insights on the future of work have identified five trends that will guide global organizations as they optimize their portfolios:

  • People are using the office less frequently than they did prior to the pandemic, but attendance is continuing to rise.
  • Globally, the office remains a core element of corporate culture.
  • Focus on portfolio optimization means more than space downsizing.
  • Occupiers trade quantity for better quality space.
  • Occupiers seek more flexibility in lease terms and building services.

Survey results portend an increase in office attendance globally in the coming year, especially in markets where employee return has been lagging.

This report was originally published in https://www.cbre.com/insights/reports/2023-office-occupier-sentiment-survey-global-summary

Key findings

With new products like ChatGPT, AI’s potential to transform the global economy has captured the world’s imagination

  • AI has enormous potential to reshape real estate, with near and long-term impacts ranging from the emergence of new markets and asset types to innovations in investment and revenue models.
  • A rapidly expanding AI ecosystem and its supporting infrastructure will drive demand for real estate in different markets across the globe.
  • PropTech adoption has laid a solid foundation for AI integration in real estate. Organizations will need to consider how they can harness AI strategically and ethically, piloting applications before scaling to deliver value.