Preferred Property Investment Destination

Singapore Among Top 3 Preferred Property Investment Destination In Asia Pacific

SINGAPORE – A yearly survey carried out by real estate consultancy CBRE shows that Singapore is the 3rd preferred destination for offshore property investments this year in Asia Pacific, reported The Edge on Friday afternoon (21 January, SGT).

While Singapore was formerly the 2nd preferred destination for cross-border real estate investments in 2021, CBRE said investors remain attracted to the city-state’s office market, following a series of purchases last year by international fund managers in anticipation of steady office rental growth amidst limited new stock and solid leasing demand from tech firms.

Meanwhile, Tokyo topped the rankings for the 3rd straight year, while Shanghai secured the 2nd spot. CBRE’s Head of capital markets Greg Hyland said the Japanese city continues to have strong appeal for international investors thanks to its availability of low-cost financing, high liquidity, and large supply of mature multifamily properties.

Other notable destinations that entered CBRE’s top 10 include Sydney, whose rank rose to number 4 from the 8th spot previously. The real estate consultancy credits the higher ranking to a resurging interest in office properties and logistics assets in the Australian city.

Hong Kong also rejoined the top 10 after falling out in 2021, with global capital lured by price discounts and repositioning opportunities for hotel and industrial developments.

In terms of property type preference, the survey shows that although logistics continues to be the preferred real estate category, interest has moderated as more property investors question whether its COVID-driven demand growth can be sustained.

Instead, more real estate investors are shifting their crosshairs to office properties on a more upbeat outlook for leasing demand, after the implementation of hybrid work was found to have a minimal impact on physical office demand.

The survey, which encompasses all real estate categories, involved over 530 Asia Pacific-based property investors.

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