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According to a recent report by the Urban Land Institute (ULI) and PwC, published on March 12, investors in the Asia Pacific (Apac) region are concerned about low yields and slow transaction volumes.
The report gathered insights from global asset managers, such as Blackstone from the US, Savills Investment Management from the UK, and CBRE Investment Management. More than 70% of survey respondents identified low yields, high interest rates, and geopolitical tensions as the top three concerns.
Despite these concerns, the region remains attractive to industry leaders as a diversification strategy due to its growing population and demographic metrics, as well as diverging monetary policies, such as Japan’s plan to increase short-term interest rates.
Last year, the region saw a 13% increase in real estate transactions, reaching a total of US$173.5 billion ($231.3 billion), surpassing the growth rates of both Europe, Middle East, and Africa (EMEA) at 12% and the Americas at 11%.
However, as Europe and North America enter a new capital markets cycle, with transaction volumes expected to improve in both regions, Apac is expected to experience slower transaction volumes.
China saw a decrease of 25% in transactions, reaching US$418.3 billion ($557.6 billion), while Hong Kong SAR saw a 1% decrease with a total of US$15.7 billion ($20.9 billion).
In contrast, asset managers in Europe have different concerns, with 85% worried about international political instability, 83% concerned about escalating war, and 77% about the region’s economic growth.
Data from MSCI, a US-based research and data analytics company, also show a stabilization of US commercial property prices in 2025, with only a 0.7% decrease. This may lead investors to focus more on Europe and North America in the coming months.
Furthermore, the report revealed that data centre assets are highly sought after for investment and development prospects in all three regions in 2025.
According to research from New York-based firm Green Street, there has been a record demand for data centres globally, with asking rents increasing at a double-digit pace. MSCI’s research also predicts a strong year for data centres in 2024, with acquisitions of existing centres through single property and portfolio deals increasing by over 60% in the US.
In September last year, Blackstone and Canada Pension Plan Investment Board (CPP) acquired AirTrunk, a data centre firm, from Macquarie Asset Management and Public Sector Pension Investment Board for US$16 billion ($21.3 billion). This deal was the largest commercial real estate transaction in Asia Pacific and globally in 2024.
The decision to invest in a Condo in Singapore has gained popularity among both local and foreign investors, thanks to the country’s strong economy, stable political climate, and exceptional quality of life. With its thriving real estate market, Singapore presents a range of opportunities, but Condos are particularly appealing due to their convenience, facilities, and potential for lucrative returns. In this piece, we’ll delve into the advantages, factors to consider, and crucial steps to follow when purchasing a Condo in Singapore. Condo
Additionally, Hilton has set a target to exceed 1,000 hotels by 2025, while hotel investments in Asia Pacific saw a 33% increase in the first half of 2022, according to JLL. ERA Realty also launched its Apac headquarters in Singapore.