APAC

Mumbai stood out in the region with its capacity surpassing the 2,000MW mark.

He noted that property managers and landlords should pay close attention to their balance sheet/capital and cost structure.

Hong Kong’s office rents are about 40% higher than Singapore’s.

Japan remains the top market for Western investors in APAC while China hits a 10-year low.

Japan led investments in the region with $8.9b during the quarter.

High-interest rates and anti-pandemic restrictions impact APAC investment in the US. 

Benjamin Tay of Rajah & Tann Singapore LLP pointed out that Vietnam, the Philippines, and Cambodia are showing steady GDP growth and present investment opportunities.

Five of eight property developers rated B3 and below are expected to have interest coverage below 1.5x in both scenarios.

Changing industry norms have raised sustainability standards for real estate projects, whilst global developments have forced the industry to reconsider the versatility of its supply chain.

There is approximately 100m sq ft of total leasable area within the life sciences sector as of end-2022.

And 70% believe unpredictable interest rates will significantly affect investment decisions.

Hong Kong is back on the top 5 after a 4-year hiatus.

Real estate is by no means immune to the volatility impacting capital markets. The current macro environment offers no shortage of reasons for investors to hesitate in pursuing opportunities. Many are confining capital to the sidelines, awaiting more clarity and for relative stability to return.

This is despite a 1% decline recorded in the fourth quarter of the year.

Commercial property investments rose 53% in this market. 

The market is expected to continue to favour tenants.