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APREA’s flagship event, the Asia Pacific Real Assets Leaders’ Congress, highlighted Asia’s growing importance as a prime investment destination amidst global macroeconomic shifts.

Key points:

  • Japan was spotlighted for its stability and opportunities in real estate, with rising demand in sectors like offices, logistics, and residential markets. Innovations such as data centers and J-REITs with stable yields were also emphasized as attractive investments.
  • India’s booming logistics and REITs and InviTs sectors, driven by strong domestic demand and liberalized regulations, make it a compelling choice for global investors seeking growth.
  • Emerging sectors across Asia, including data centers, life sciences, and senior housing, were identified as promising opportunities, particularly as ESG considerations and technology integration reshape real assets.
  • Despite challenges such as China’s economic headwinds and regional geopolitical uncertainties, the conference underscored the importance of adapting investment strategies and leveraging Asia’s growth story to navigate the evolving global real assets landscape.

The real estate sector in the Asia Pacific (APAC) region continues to demonstrate robust growth with significant advancements in the housing segment, financing schemes and sustainable transformation. Technological progress in APAC economies has also catalysed transformation within the real estate sector, with technologies such as 3D printing and online home building tools gaining momentum. These changes have concurrently influenced the development of real estate projects within the region.

The APAC real estate sector is progressively adopting green energy innovations mainly through partnerships and investments for renewable energy projects, green technologies and sustainable urban development. This shift is evident in the updated real estate regulations within the region for 2QFY25. Numerous APAC economies, such as Australia, India, Singapore and China, have introduced policies and initiatives that encourage green infrastructure and the incorporation of technology to enhance their property markets. Furthermore, commercial and industrial real estate developments witnessed a steady rise in the APAC region with development plans for business and commercial projects underway.

In line with these strategic developments, APAC economies offer an attractive prospect for investors due to regulatory updates aimed at attracting diverse asset classes and types. These economies are predicted to play a pivotal role in channelling regional investments and fostering development in the forthcoming months.

CBRE professionals in Asia Pacific note that investment activity in the region is strengthening as interest rate cuts commence.

Continued cap rate expansion is expected across most markets in Asia Pacific, with cap rates in Australia showing signs of peaking, and Japan remaining stable. Core assets are expected to exhibit greater resilience over the next six months.

Other key highlights from the survey include:

  • Investor risk appetite has increased slightly, and buying intentions have improved across almost all markets and investor types.
  • Core Grade A offices return to investors’ radar, with neighbourhood malls also generating more interest.
  • Recovery of investment activity in certain markets pushed back to mid-2025.
  • More acquisition opportunities to emerge amid a narrowing price gap between buyers and sellers in most sectors.

Please find below the rebalancing results (effective 23 December 2024 start of trading) for the:

  • GPR/APREA Investable 100 Index
  • GPR/APREA Investable REIT 100 Index
  • GPR/APREA Composite Index
  • GPR/APREA Composite REIT Index (indicated with an asterisk)

GPR/APREA Investable 100 Index

INCLUSIONS

CHNChina Jinmao Holdings Group Ltd
THAAP Thailand PCL

EXCLUSIONS

JPNDaiwa Office Investment Corporation
MYSUEM Sunrise Bhd

GPR/APREA Investable REIT 100 Index

INCLUSIONS

AUSAbacus Storage King
AUSHealthCo Healthcare and Wellness REIT
INDEmbassy Office Parks REIT
KORShinhan Alpha REIT Co. Ltd.
SGPAIMS APAC REIT

EXCLUSIONS

JPNESCON JAPAN REIT Investment Corporation
KORLOTTE REIT
SGPAcrophyte Hospitality Trust
SGPKeppel Pacific Oak US REIT

GPR/APREA Composite Index

INCLUSIONS

3883 HKChina Aoyuan Group Limited
1638 HKKaisa Group Holdings Ltd.
MMLP IJPT Mega Manunggal Property Tbk
HUB IBHubtown Limited
CPNCG TBCPN Commercial Growth Leasehold Property Fund
QHPF TBQuality Houses Leasehold Property Fund
TPRIME TBThailand Prime Property Freehold and Leasehold REIT *

EXCLUSIONS

None

Environmental sustainability has taken on increased global significance in recent years, with an increased focus on climate resilience and net-zero carbon (NZC) strategies. This is particularly relevant to the real estate industry as it seeks to future-proof real estate portfolios using effective climate risk management strategies. Environmental sustainability issues are equally applicable in both the developed and emerging real estate markets.

This report focuses on net-zero carbon strategies for real estate in India. We conducted interviews with leading players in India’s real estate industry. This enabled in-depth understanding and insight into the critical issues for achieving net-zero carbon in India and identified the most effective pathways forward for real estate. Many of the issues concerning India are equally relevant to other emerging markets in Asia, so this report should also appeal to a wider audience.

This study evaluates key barriers, challenges, and opportunities in the adoption of NZC and recommends strategies for the low-carbon transformation of India’s real estate sector.

The rise of mixed-use development platforms has prompted hospitality brands to diversify their offerings, expanding into residential spaces such as resort villas and luxury apartments to cater to a broader audience. This note provides an overview of the concept of Branded Residences and explores how the Indian market is adapting and evolving with this trend. As the hospitality sector in India is still relatively new to Branded Residences, this note highlights key features, incentives, and regulatory considerations, serving as a guide for both the hospitality and real estate sectors to make informed decisions.

In today’s highly competitive Asia Pacific retail market, retailers must continually create innovative products, services and experiences to differentiate themselves from their peers. With brick-and-mortar retail remaining an integral part of consumers’ shopping journey, retail real estate continues to play a major role in the creation and delivery of innovative brand experience.

Based on its market-leading research, CBRE has identified 12 attributes that nurture innovation in retail real estate across four pillars: 1) Market size; 2) Consumer profile; 3) Retailer growth strategies; 4) Spaces that tell a story.

CBRE has used these attributes to create the Asia Pacific Retail Innovation Index, which analyses the innovation performance of major cities in Asia Pacific and identifies their strengths, weaknesses and relative appeal to retailers.

The report also provides recommendations to retailers and landlords on how to spark innovation and creativity in their portfolios to address the retail industry’s evolving needs and expectations.

After a challenging period of higher borrowing costs that strained real assets, central banks are now transitioning toward rate reductions, creating opportunities across sectors such as commercial properties, logistics, retail, and hospitality.

In our latest issue of APREA TrendWatch, we explore the revival of real estate investments amid easing monetary policies in the Asia Pacific.