Capital Markets

Office: Office leasing volume slightly improved on a q-o-q basis but most deals involved renewals, relocations, and consolidations. All markets tracked by CBRE (except Seoul) saw vacancy increase over the quarter. Rents were flat despite solid growth in Sydney, Perth, Seoul and selected micro-markets in major cities of India.

Retail: Retail leasing activity continued to recover as retailers stayed cautiously optimistic. Site inspections by retailers rose to their highest levels in June since surveys began, thanks to resilient upgrading demand and requirements from new market entrants. Occupancy in core retail districts gradually recovered over the period, pushing up rents by 0.2% q-o-q.

Logistics: Subdued regional export demand, slowing manufacturing activity and weak e-commerce growth strained logistics leasing demand. New supply remained elevated while rents increased by 1.1% q-o-q, marking a second consecutive quarter of weaker growth.

Investment: With interest rates yet to reach their peak and property yield expansion insufficient to reflect the rising cost of finance, investment volume contracted by 37% y-o-y to US$19.2 billion. Cross-border investment volume totalled just US$4.1 billion. Negative carry continued to make investors hesitant to invest in Asia Pacific commercial real estate.

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-figure

Download the Report Read More

The Singapore property market remains resilient despite weakening property demand. Market rents have continued to rise amidst a tight supply pipeline. However, with weaker growth prospects and a flight to quality, the market is starting to bifurcate, with non-prime assets seeing stagnating growth.

Our latest paper explores the economic outlook for Singapore, the impact on the office, industrial, retail, private residential, and hotels sector, and latest investment trends.

Download the Report

Read More

Q2 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: With a low prevailing vacancy level, gross effective rents for the Core CBD (Grade A) market increased marginally by 0.4% q-o-q.

Business Parks: Leasing activity was focused on renewals as occupiers exercised more caution due to rising global macro economic headwinds. Selected tech and R&D industries gave up space in Q2 2023.

Retail: Prime retail rents for all submarkets rose further in Q2 2023, supported by the continued recovery of the Orchard Road, City Hall/Marina Centre and Fringe areas, and the resilience of the suburban market.

Residential: Private home prices declined for the first time in three years after cooling measures.

Industrial: Prime logistics rentals have grown by 8.6% in H1 2023, despite a weak macroeconomic backdrop mainly due to limited supply.

Investment: Preliminary real estate investment volumes in Singapore for Q2 2023 declined 44.1% q-o-q and 64.3% y-o-y to $3.495 bn, mainly on sharp falls in retail and office asset sales.

This report was originally published in https://www.cbre.com.sg/insights/figures/singapore-figures-q2-2023

Download the Report Read More

FY23 saw PE activity in real estate stable on a y-o-y basis. However, there was a keen interest in platform deals, with a total value of $4.5 Bn. Most of the large ticket platform deals were in rent-generating assets (offices & warehouses) for pan India developments, while the smaller ticket items were largely for residential developments in southern cities of India. Domestic investors were significantly more active in FY23, while foreign investors have seen their incremental investments decline. Consequently, the share of domestic PE investors in Indian RE increased from 14% in FY22 to 22% in FY23.

Download the Report Read More