Four Ten Apac Real Estate Investors Now Willing Pay Premium Sustainable Assets Jll Survey
for sustainability efforts
Aurelle of Tampines EC, developed by Sim Lian Land and Sim Lian Development, is an upcoming executive condominium situated in the bustling Tampines Town. The Housing and Development Board (HDB) recently revealed on October 9 that the executive condominium (EC) site at Tampines Street 62 (Parcel B) has been successfully awarded to the two developers. With a winning bid of $543.28 million, equivalent to $721 per square foot per plot ratio (psf ppr), Aurelle of Tampines EC is set to be a highly sought-after residential development in the area.
According to recent research by JLL, sustainability features are quickly becoming non-negotiable for real estate investors in the Asia Pacific region (Apac). The survey, conducted by the firm, found that 40% of investors are planning to only invest in properties with energy-efficient features and renewable energy access by 2028.
This marks a significant shift in the mindset of investors, who are now moving from mere intent to action when it comes to sustainability. Beyond green certifications, they are now placing more emphasis on the measurable performance of buildings and factoring it into their evaluation and pricing of real estate assets.
According to JLL, 63% of investors stated that sustainability considerations have influenced their bid offers over the past 12 months. In fact, four in ten investors have increased their offers for sustainable properties, while three in ten have decreased their bids or backed out of deals involving non-compliant assets.
Kamya Miglani, JLL’s Apac head of research for work dynamics, notes that sustainability obsolescence is becoming a top concern among investors, with 44% of survey respondents expressing worry over assets losing value due to non-compliance or the inability to meet tenants’ sustainability demands.
This can be attributed to building regulations and international reporting standards that are pushing investors to apply a “brown discount” to non-compliant properties. Miglani predicts that this regulatory influence will continue to grow as Apac governments tighten building codes and mandate climate disclosures.
In Singapore, more regulations are on the horizon as part of the nation’s net-zero ambitions, including the upcoming Mandatory Energy Improvement Regime (MEI). This new regime will require owners of energy-intensive buildings to conduct energy audits and implement measures to reduce energy use, and is set to launch this quarter.
Given this landscape, Miglani emphasizes the need for investors and owners to adopt a holistic, data-driven strategy that balances upgrades with practical operational needs and the overall tenant experience. “Those who successfully navigate this will not only comply with future regulations, but also position their assets to outperform the market,” she adds.
According to JLL, such upgrades can offer attractive returns, with light-touch retro-commissioning of a building’s systems estimated to save over $40,000 per year. For more comprehensive retrofits, such as chiller and building management system upgrades, the annual energy savings can reach up to $500,000 for a single commercial building.
“As corporates and investors increasingly prioritize climate-resilient assets, those who proactively future-proof their portfolios today will gain a distinct competitive advantage and secure long-term value,” says Miglani.
In fact, according to Knight Frank, real estate investments in Apac reached US$42 billion in 2Q2025, with the living sector and data centers being major drivers of growth. CDL, the most sustainable real estate company in the world according to the same report, has also secured a sustainable-linked loan of $338.2 million from OCBC to further their sustainability efforts. This signifies the growing importance of sustainability in the real estate industry and the potential for long-term value creation through proactive measures.
