Real Estate Investors targets Singapore among top three Asia Pacific destinations in 2022

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Piccadilly Grand ebrochure

A survey conducted annually conducted by CBRE has concluded the following: Singapore is the third-most popular destination for cross-border real property investments in the year 2022 following Tokyo as well as Shangai.

This survey that includes all property kinds, asked more than 530 investors from Asia Pacific.

It’s the third straight year that Tokyo has been atop the list of. Greg Hyland, CBRE’s head of capital markets Asia Pacific, notes that Tokyo’s low-cost financing, high liquidity , and a huge quantities of multifamily assets make it an attractive market that is attracting for investors from abroad.

Piccadilly Grand ebrochure will attract investors and homeowners who desire to live in an exciting historic neighbourhood.

Singapore has dropped one rung down from second in 2021, and is now third this year. CBRE notifies investors that they are attracted by the city’s offices after a string of acquisitions made last year by fund managers from around the world in anticipation of continued rent growth, a limited new inventory and a strong demand for leasing from technology firms.

Other noteworthy cities that have made it to the top 10 list include Sydney which jumped from the eighth spot in 2021 and advancing to fourth this year. CBRE credits the top spot to an increase in interest in office and logistics properties within the Australian city.

Hong Kong rejoined the top 10 list after dropping out in the past, as the lure of international capital new opportunities for repositioning and price cuts in the hotel and industrial sectors.

Concerning sector preferences The survey found that logistics remains to be the most preferred sector but interest has decreased as more investors wonder if demand growth driven by pandemics is maintained.

More investors are turning their attention toward office properties in a more positive prospects for leasing demand following that introduction of hybrid work was observed to have only minimal impact on brick-and-mortar office space requirements.

The results of the survey showed that, among alternatives, data centres continue to be the most popular area of focus, while the demand is expected to increase for healthcare and cold storage. However the real estate sector has not attracted as much interest from investors in the current survey that CBRE blames on continuing issues with debt that are facing the mainland Chinese developers.

The demand for environmental, social , and Governance (ESG) investing seems to be increasing as the majority of investors (56%)% of investors who were surveyed using ESG criteria when investing.

In order to finance improvements for already existing properties, developers, REITs and fund managers are increasingly turning to green finance. Henry Chin, CBRE’s global leader of investor thought leadership and head of researchfor Asia Pacific, expects yields to be stable at present levels.

But, with bond yields increasing and the future yields are expected to be driven by net operating profits. “We believe that investors, while searching for yields that are higher and opportunities to look for value-added options like upgrading old office buildings to satisfy ESG requirements, or investing in core-plus strategies, such as buying prime assets that have the possibility of adjusting tenant mix or shorter lease expiries for more competitive rents,” he says.

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