Singapore Clinch 11 Asia Pacific Cross Border Real Estate Investment Capital 2024
Singapore is projected to be one of the top three real estate investment destinations in the Asia Pacific region for cross-border capital by 2024. According to a market report by Knight Frank, the city-state is expected to attract approximately 11% of cross-border investment in the region.
The top spot will be held by Australia, with an expected 36% share of cross-border investment in the region this year, followed by Japan with 23%. Singapore rounds out the top three with 11%.
The report, published on July 30, also predicts that 48% of inbound real estate investment in Singapore will go towards the office market, 31% towards industrial assets, and the remaining 19% and 2% towards retail and hotel investments respectively.
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In the last quarter, inbound cross-border investment in Singapore amounted to US$756.8 million ($1.017 billion), largely driven by PAG’s acquisition of Mapletree Anson from Mapletree Commercial Trust for US$567.5 million.
Knight Frank also highlights hotel and mixed-use assets as lucrative opportunities for investors, and recommends keeping an eye out for strategic partnerships between investors and developers for potential value-add strategies. Additionally, the consultancy suggests that investments in Grade-B/Grade-C office properties and some hotel properties may prove to be wise decisions.
Regarding outbound capital, Knight Frank predicts that Singapore and Japan will be among the top sources of real estate investment capital in 2024. The report also notes that investors will likely focus on sectors and assets with “structural tailwinds.”
Victoria Ormond, head of global capital markets research at Knight Frank, highlights the importance of private capital in global investments, particularly in light of current market dynamics shaped by debt markets. “We predict a short window of opportunity for global capital to take advantage of current pricing and reduced competition before the expected recovery becomes widely recognized,” says Ormond.
She also predicts that cross-border investments in the Asia Pacific region will see a significant increase in the second half of 2024. Simon Matthews, director of debt advisory, Asia Pacific, at Knight Frank, adds that interest rates in key markets are expected to remain relatively stable, providing a favorable environment for real estate investments.
