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Stay ahead of the curve with APREA’s exclusive monthly update tracking the performance of China REITs.
APREA C-REITs Roundup provides the latest info and developments in C-REITs. Available for APREA members only, this important resource is your key to navigating the landscape of C-REITs.
Stay ahead of the curve with APREA’s exclusive monthly update tracking the performance of China REITs.
APREA C-REITs Roundup provides the latest info and developments in C-REITs. Available for APREA members only, this important resource is your key to navigating the landscape of C-REITs.
Amidst the resurgence of tariffs, investors are now recalibrating strategies to favour supply chain resilience and markets with policy stability, notably Japan, Australia, and India. While sectors such as high-spec logistics, R&D infrastructure, and alternatives continue to attract interest, regions heavily dependent on U.S. trade remain vulnerable to shifting policies.
This trend marks a broader strategic pivot from global efficiency toward regional resilience, with capital increasingly aligned to adaptable asset classes and diversified portfolios.
CBRE conducts the Asia Pacific Cap Rate Survey with our capital markets brokers and valuers every six months to obtain insights into current capital markets trends and sentiment along with the latest cap rate movements across individual markets and sectors. This report summarises the survey’s key findings.
Below are the key highlights:
The Asia Pacific (APAC) real estate sector continues to exhibit moderate growth accompanied by notable progress in the housing segment, industrial and commercial market and sustainable real estate transformation. Strategic improvements in construction practices have also positioned this sector as a key driver of transformation, simultaneously shaping the evolution of real estate projects across the region.
The APAC real estate sector is progressively adopting eco-friendly innovations mainly through investments in renewable energy projects and sustainable urban development. This shift is evident in the evolving real estate regulations within the region for the last three months (December 2024 – February 2025). Countries such as Australia and Singapore have implemented policies and initiatives to foster the adoption of green energy, enhancing the growth and environmental responsibility of their real estate markets. Additionally, the region saw notable growth in commercial and industrial real estate, supported by fundings and redevelopment plans for business and commercial projects.
Aligned with these strategic advancements, APAC economies, including Australia, Singapore, China, Hong Kong, Japan and India, present promising opportunities for investors, driven by regulatory reforms designed to attract various asset classes and types. These nations are expected to play a significant role in directing regional investments and promoting growth in the coming months.
Overall: We still believe that the interest rate tailwind of slower global growth will support REITs in Asia especially Australia, Singapore and even Hong Kong (see fall in HIBOR). CPI in our region outside of Japan has been trending very much in the right direction.
The global real estate sector faces mounting pressure to decarbonise, contributing nearly 40% of total emissions (1). With the 2050 net-zero target fast approaching, investors and asset managers must urgently align with evolving ESG standards or risk falling behind.
Europe: Regulatory Leadership and Standardisation
Europe leads the way in ESG integration with rigorous regulatory frameworks. The EU Taxonomy for Sustainable Activities (2) provides a clear classification system for environmentally sustainable investments, guiding capital allocation towards green real estate. Additionally, the Global Real Estate Sustainability Benchmark (GRESB) (3)—originally developed in Europe—has become a widely accepted ESG performance measurement tool, shaping investment decisions worldwide.
GRESB’s influence extends beyond Europe, particularly into the Asia-Pacific (APAC) region, where a joint study with ANREV found that higher GRESB scores correlate with stronger financial performance. This has encouraged investors and developers across APAC to integrate sustainability benchmarks into asset management, enhancing ESG disclosures and compliance.
United States: Market-Driven ESG Adoption
Unlike Europe’s regulatory-first approach, the US real estate sector is driven by market incentives and investor demand. The Inflation Reduction Act (2022) promotes building efficiency and renewable energy adoption, while major cities have introduced stringent local policies. New York City’s Local Law 97 (4) mandates a 40% reduction in building emissions by 2030, penalising non-compliance with significant financial consequences.
Beyond regulation, major institutional investors such as BlackRock and Brookfield have embedded ESG principles into real estate portfolio strategies. The increasing willingness of tenants to pay a premium for energy-efficient spaces further highlights the market-driven shift towards sustainability.
Asia: Diverse Strategies Across Developed and Emerging Markets
Asia’s real estate ESG trends vary by region. China is focusing on large-scale sustainable urban developments as part of its 2060 carbon-neutral goal. Japan and South Korea are leveraging smart-grid technology and AI-driven energy management to improve efficiency and emissions tracking.
In Southeast Asia, where economies are still developing, international financial support is playing a crucial role in accelerating sustainability efforts. Singapore, for instance, has seen rapid growth in green-certified buildings, with investors aligning assets to Task Force on Climate-related Financial Disclosures (TCFD) (5) and Science-Based Targets (SBTi) (6) recommendations to improve transparency and global compliance.
A Global Shift Towards Sustainable Real Estate
Despite regional differences, ESG integration in real estate is becoming a global imperative. Investors, developers, and asset managers must navigate evolving standards while ensuring properties remain competitive in an increasingly sustainability-driven market.
To remain ahead, real estate leaders must proactively:
As the real estate industry moves toward a net-zero future, those who embrace sustainability will protect long-term assett value and strengthen their market position. The shift from regional approaches to a globally integrated ESG strategy is already underway—now is the time for decisive action.
References:
Trump 2.0—The First 100 Days explores the early economic and commercial real estate implications of President Trump’s 2025 policy agenda. Building on our analyses of the First 100 Days from the last two administrations, this series of reports examines critical developments in trade policy, tax reforms, immigration and other policy priorities. To provide tailored insights, we’ve created focused analyses for the U.S. and Canada, as well as the APAC and EMEA regions, highlighting the economic and property sector outlook in each area. Each report dives into relevant regional trends across sectors, offering invaluable insights for occupiers and investors navigating today’s landscape.
Our analysis presents the most probable and possible scenarios based on current data, but conditions remain dynamic, with new developments still emerging. Both potential opportunities and challenges may arise as these policies take shape over time.
The Philippines is emerging as a promising investment destination, driven by strong macroeconomic fundamentals, a dynamic consumer base, and expanding opportunities in REITs, hospitality, and renewable energy. Real estate diversification, sustainable development, and infrastructure upgrades are creating new growth avenues across both primary and secondary markets.
As global supply chains diversify, the country’s strategic location and young workforce further position it for long-term gains. Investors who navigate local dynamics carefully and prioritize sustainability and partnerships with experienced players stand to unlock substantial value.
Kemmu Kawai joined Longevity Partners Japan in September 2022 as the Country Director. Based in Tokyo, he oversees all operations and activities in Japan, the Asia-Pacific region and beyond. He brings him more than 16 years of experience in finance where he specialised in real estate and credit investments. Before joining Longevity Partners, he served as a Portfolio Manager at Norinchukin Bank and as Investment Manager at Center Point Development.
Kemmu Kawai
Managing Director
Longevity Partners
