According to the latest Asia Pacific Investor Intentions Survey by CBRE, Singapore has been named the third most preferred destination for cross-border real estate investment in the Asia-Pacific region for 2022.
Tokyo ranked first for the third consecutive year, with Shanghai in second place.
The survey, which covers all property types, found that 60% of investors intend to acquire more real estate this year than in 2021. In the Asia-Pacific region, investors from Singapore, South Korea, Japan, and Australia showed the strongest purchasing intentions.
Greg Hyland, Head of Capital Markets for Asia Pacific at CBRE, stated, “As the overall appetite of investors is expected to remain strong, we expect 2022 to be a landmark year for real estate investment across the region.”
In fact, the consulting firm forecasts that in 2022, the turnover of commercial real estate investment in the Asia-Pacific region will grow by 5% to 10%, reaching approximately S$150 billion.
Top 10 Preferred Cities for Cross-Border Real Estate Investment
| 2022 | 2021 | |
| 1 | Tokyo | Tokyo |
| 2 | Shanghai | Singapore |
| 3 | Singapore | Seoul |
| 4 | Sydney | Shanghai |
| 5 | Beijing | Ho Chi Minh City |
| 6 | Hong Kong | Beijing |
| 7 | Seoul | Shenzhen |
| 8 | Osaka | Sydney |
| 9 | Ho Chi Minh City | Osaka |
| 10 | Japan: Other Regional Cities | Melbourne |
Source: CBRE
CBRE stated that Singapore’s strong office rental growth continues to attract investors from Japan, Taiwan, and outside the Asia-Pacific region. The report noted that international fund management companies have made a series of acquisitions in Singapore, as they expect “steady growth in leasing activity, limited new supply, and strong leasing demand from tech companies”.
CBRE stated that Tokyo remains the largest city for cross-border investment globally, with its low-cost financing, high liquidity, and large volume of mature multi-family assets making it a market that “continues to be highly attractive” to international investors.
CBRE also noted that Shanghai, which ranked second, continues to attract a large amount of Asian capital. The report stated that despite an influx of new supply, office rents in the city are expected to remain stable in 2022 due to strong leasing demand from financial, life sciences, and technology companies.
In the CBRE survey, Hong Kong and Sydney brought notable changes. Hong Kong re-entered the top ten after falling off the list last year, while interest in Sydney’s office and logistics properties is recovering.
CBRE also shared other insights from the survey that could influence real estate investment in 2022.
Firstly, the report pointed out that although logistics remains a favored sector among investors (36%), more investors are turning their attention to office assets, as the impact of introducing hybrid work models on the demand for physical office space has been found to be “minimal”.
CBRE revealed that among alternative assets, data centers remain the primary focus for investors (41%), while demand for cold storage (35%) and healthcare (31%) is expected to strengthen. On the other hand, real estate debt, one of the more popular alternative sectors among investors, registered lower interest in the survey.
CBRE also noted that an increasing number of investors are incorporating Environmental, Social, and Governance (ESG) criteria into their investments. The report states this includes prioritizing the purchase of buildings with green certifications and retrofitting existing properties to enhance energy efficiency, water conservation, and wellness.
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