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As sustainability becomes a key pillar of long-term value creation in real estate, CapitaLand Investment (CLI) has developed a proprietary Return on Sustainability (RoS) framework to rigorously assess the financial impact of green capital expenditure.

Designed as a data-driven, decision-making tool, the RoS framework evaluates eight key variables that influence financial performance: green capital expenditure (capex), utility savings, carbon cost reductions, rental premiums, longer leasing durations, lower interest rates, reduced insurance premiums, and enhanced asset valuations. By quantifying both risks and returns, this model equips asset managers with a holistic view of the tangible value that sustainability initiatives can unlock.

More than a reporting metric, the RoS framework serves as a capital allocation compass – guiding decisions on investment, asset-level budgets, cost-benefit analysis for asset enhancement initiatives or redevelopments. In an environment where regulatory standards, investor expectations, and climate resilience are evolving rapidly, having a structured methodology to assess the financial case for sustainable investments is not just prudent – it is essential. CLI’s RoS framework bridges the gap between environmental responsibility and financial accountability, ensuring that decisions around sustainability are grounded in both environmental intent and financial discipline.

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Overview: Asian real estate securities are up 17.53% YTD in USD, supported by recovering REITs/Developers, positive FX, and falling rates reigniting investor interest. Lower borrowing costs in Asia ex-Japan enable earnings upgrades and accretive acquisitions, while a weak USD, low growth, and falling rates continue to support positioning in the sector.

  • Japan: JREITs up 11.9% since January but still trade at a 13% NAV discount. Ongoing asset sales and buybacks continue, while BOJ remains cautious amid US-Japan trade tensions. Fundamentals in Office and Hotels remain strong, and rising construction costs are limiting new supply.
  • Australia: The RBA is expected to cut rates later this year, with inflation within target and labour markets softening and part-time jobs declining. We are maintaining overweights in Residential-Diversified, Retail, and Self-Storage. Macro data is expected to drive prices ahead of August earnings.
  • Hong Kong: HK real estate stocks rose over 20% in H1 2025, supported by falling rates, recovering retail, residential and tourism activity, and underweight investor positioning. HK Land has led gains on asset sales, buybacks, and dividend enhancement, while large-cap developers remain at wide NAV discounts.
  • Singapore: Large-cap SREITs are trading at 2025 highs, supported by falling rates reducing refinancing costs and enabling DPU-accretive deals. The recent NTT Global Data Center REIT IPO was 2.5x oversubscribed with an initial 7.5% yield. New residential cooling measures are unlikely to materially impact the sector.
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The Asia-Pacific Horizon report synthesises fast-moving developments under Trump 2.0 and offers strategic guidance for navigating the turbulence

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The 2025 CBRE Asia Pacific Logistics Occupier Survey reveals a landscape of cautious optimism among occupiers, shaped by ongoing geopolitical tensions and shifting global trade dynamics. While short-term business confidence has dipped—particularly due to tariff uncertainties and regulatory challenges—long-term expansion plans remain intact.

Key findings highlight a growing trend toward diversification of supply chains, an increase in outsourcing, and a pivot toward asset-light strategies to mitigate risk and manage costs. Occupiers are showing strong interest in emerging economies, with India standing out for its robust occupier sentiment, while mainland China continues to grapple with oversupply despite signs of stabilisation.

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The 2025 CBRE Asia Pacific Logistics Occupier Survey reveals a landscape of cautious optimism among occupiers, shaped by ongoing geopolitical tensions and shifting global trade dynamics. While short-term business confidence has dipped—particularly due to tariff uncertainties and regulatory challenges—long-term expansion plans remain intact.

Key findings highlight a growing trend toward diversification of supply chains, an increase in outsourcing, and a pivot toward asset-light strategies to mitigate risk and manage costs. Occupiers are showing strong interest in emerging economies, with India standing out for its robust occupier sentiment, while mainland China continues to grapple with oversupply despite signs of stabilisation.

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As global economic headwinds reshape capital flows, Japan has emerged as a top destination for cross-border investment in 2025. A convergence of macroeconomic trends, structural reforms, and favourable policy dynamics is solidifying Japan’s status as a strategic anchor amid global uncertainty. Despite rising global interest rates, Japan has maintained a positive yield spread across all major real estate sectors, making it particularly attractive to institutional investors seeking income stability.

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Cushman & Wakefield’s What Occupiers Want 2025, in collaboration with CoreNet Global, presents findings from over 235 global CRE leaders, offering a timely perspective on evolving workplace strategies, investment priorities, and the future of office space.

Key insights include:

  • Cost remains king, continuing to drive real estate decisions across regions.
  • Reporting lines are shifting, with nearly 30% of CRE teams now reporting into HR—reflecting growing alignment with people and culture agendas.
  • Flexible hiring takes hold, as 61% of occupiers adopt geographically flexible recruitment strategies.
  • Portfolios are stabilizing, with a decline in planned reductions and rising occupancy levels.
  • Expectations from landlords are growing, with 85% of occupiers seeking enhanced amenities—and 46% willing to pay a premium.
  • A call for better metrics: CRE leaders are urged to adopt holistic frameworks that link workplace decisions to business performance.
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The global hotel industry is in a period of brand consolidation, with the world’s leading operators continuing to expand their footprint through new developments and brand strategies.

With hotel brand penetration still relatively low compared to the U.S. and Europe, Asia Pacific has become a key growth market.

CBRE Research estimates that 74% of Asia Pacific hotel supply between now and 2030 is aligned with one of the top 8 listed hotel companies – a significant increase over the currently operational market share of 18%.

Our latest report analyses the current state of the hotel brand landscape, and explores the brand strategies that owners and operators are pursuing to adapt to ever-changing market dynamics.

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Overall: We maintain a cautiously optimistic view on Asian REITs, supported by falling interest rates across Asia ex-Japan, which enable lower financing costs and open the door for accretive acquisitions. Singapore exemplifies this trend, with Capitaland Ascendas acquiring assets at attractive cap rates using low-cost debt and equity raised at a premium to NAV.

Regional Highlights:

  • Japan: JREITs have outperformed equities in 2025 despite rising bond yields, driven by wide valuation discounts and buybacks. While refinancing at higher rates is a headwind, rental growth from expiring COVID-era leases and strong fundamentals in office, hotel, and urban retail sectors provide earnings support. JREITs are preferred over developers at this stage.
  • Australia: Ex-Goodman, REITs have rallied with names like Charter Hall and Mirvac seeing strong gains. Valuations are now full in some names, prompting rotation to undervalued plays like National Storage REIT, which may benefit from consolidation trends and takeover potential. Exposure to Australia has been trimmed in favor of better value in Singapore.
  • Hong Kong: Ultra-low HIBOR levels and recovering residential demand support REITs and Developers, particularly those with floating rate debt. Retail REITs benefit from stabilizing sales and moderating outbound travel. Link REIT and Fortune REIT may gain from Stock Connect inclusion. Caution remains for the oversupplied Central office market.
  • Singapore: Large-cap SREITs (CICT, CLAR, Frasers Centrepoint) offer compelling relative value. Despite rate cuts, sector underperformance persists, but the high yield spread over rates is expected to attract rotation from banks. Accretive acquisition pipelines and potential growth in data centers and healthcare assets add upside.
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John Lim on Purpose, Partnership, and the Future of Asia’s Real Assets

Inside the mind of the APREA Chairman as he reflects on leadership, long-term value, and shaping resilient capital markets across the region.

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