Knowledge Hub

2024 is anticipated to be a more dynamic year for the Asia Pacific real estate industry. The ability to act quickly, dig deeply into markets and sectors to identify value, and forge productive partnerships will be key to making the most of the region’s resurgence.

Colliers' 2024 Investor Insights - Country Spotlight Series aims to provide real estate investors and owners with unique insights into the year ahead and a deep understanding of each market across the region. As investors evaluate their portfolios against the fast-evolving global landscape, this series provides a strategic view on the key market dynamics, outlook and opportunities, along with actionable insights across asset classes in Asia Pacific.

CBRE Asia Pacific Research and the U.S. Green Building Council have jointly launched the Asia Pacific Real Estate Chief Sustainability Officer Survey, which provides insights from landlords and investors across the region on how they are addressing the ESG imperative, the role of the CSO in achieving their goals, and their companies’ level of preparedness in achieving net zero, as well as any obstacles that are hindering progress.Key findings include: 

• Having a CSO or Head of ESG is seen as essential: More than 80% of sampled landlords and investors have established designated roles for such functions in Asia Pacific.
• Asset owners’ net zero target is 20 years later than occupiers: About half of the surveyed asset owners cited 2050 as their target to achieve net zero. However, a separate CBRE ESG survey finds that many multinational occupiers are aiming to reach net zero by 2030.
• Adoption of green-certified buildings is accelerating: Asset owners will increase the number of green buildings in their portfolios in the coming three years, although availability of green office space lags market demand.
• Asset owners have widely adopted green finance: 75% of surveyed asset owners have adopted green financing for capital-heavy construction and acquisition of green buildings, with Sustainability-Linked Bonds also proliferating.

This report was originally published in https://www.cbre.com/insights/reports/asia-pacific-real-estate-chief-sustainability-officer-survey

The Asia Pacific real estate landscape is evolving, witnessing a surge in alternative sectors such as data centers and healthcare. A collaborative survey by APREA and CenterSquare Investment Management gathered insights from diverse industry leaders and professionals, revealing a notable inclination towards alternative real estate.

Investors foresee higher potential returns in these sectors over the next 1-3 years, with a strong focus on data centers, healthcare, and multi-family and student accommodations. Challenges include limited stock availability and the importance of operating platforms for optimal returns.

Japan is perceived as the current hotspot, while Indonesia and Thailand emerge as promising markets for the future. The survey emphasizes the need for ongoing education to enhance investor understanding of the evolving real estate dynamics.

In 2024, Southeast Asia's real estate landscape, influenced by robust economic fundamentals and changing demographics, spotlights growth opportunities in the Philippines, Malaysia and Vietnam. The industrial and logistics sectors, driven by rising e-commerce demand, lead investor interest, with a surge in the wellness and healthcare space.

In the Philippines, industrial real estate gains favor, the luxury residential segment sees a surge, and the office sector anticipates improvement. Malaysia projects a robust 2024, emphasizing industrial, logistics, and data centers, with ESG considerations gaining importance. Vietnam, overcoming economic challenges, shows promise in the industrial sector and expects a tenant-led office market.

Investors eye these markets cautiously, considering interest rate differentials and managing currency fluctuations for favorable risk-adjusted returns in Southeast Asia's thriving real estate markets.