Capital Markets

Key Trends

• Investment sentiment remains subdued
• High interest rates continue to weigh on investor demand
• Office (-40% q-o-q) and industrial (-52% q-o-q) investment declines sharply
• Negative carry drives some motivated sellers to increase discounts
• Cap rates set to expand further over remainder of year
• Purchasing activity to remain muted but should resume in H2 2023
• Prices to undergo further downward adjustment

This report was originally published in https://www.cbre.com/research-and-reports?PUBID=CA8D02B3-3EA7-409C-B5BA-0BD91194CD6E

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This report examines the investment capital flows to and from the Asia Pacific region in 2022, and highlights the key markets and sectors that saw notable inflows and outflows.

Key highlights include:

• India was the only market in Asia Pacific to attract more international capital in 2022 compared to the previous year.
• While Singapore remains the biggest source of capital in Asia Pacific, investment halved from 2021.
• Western investment in mainland China fell to just US$500 million in 2022.
• Interest and exchange rate volatility has eroded Asia Pacific investors’ appetite for U.S. real estate.
• U.S. investment in Asia Pacific slowed significantly due to sharp interest rate hikes in H2 2022.

This report was originally published in https://www.cbre.com/insights/reports/2022-asia-pacific-real-estate-capital-flows

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Q1 2023 Singapore Figures report provides the latest commentary and data on net absorption, rents, vacancy, supply and other key metrics in Singapore's office, business parks, retail, residential and industrial markets, along with an analysis of real estate investment activity.

Executive Summary:

• Office: The strong momentum amongst the office sector began to show signs of moderation as uncertainties within the tech and banking sectors grew.

• Business Parks: Rental increase for City Fringe took a pause as rents remained flat for the first time after seven consecutive quarters of increase. Rents for Rest of Island also remained flat in Q1 2023.

• Retail: Prime retail rents for all submarkets continued to rise in Q1 2023, buoyed by the recovery of the Orchard Road, City Hall/Marina Centre and Fringe areas and the resilience of the suburban market.

• Residential: Private home price growth saw an uptick amid low transaction volumes.

• Industrial: Amid strong competition for storage space in modern ramp-up developments, prime logistics saw the strongest rental growth of 3.7% q-o-q in Q1 2023.

• Investment: Preliminary real estate investment volumes in Singapore for Q1 2023 surged by 73.0% q-o-q (but down 40.9% y-o-y) to $6.068 bn, mainly on the large-ticket retail asset divestments by Mercatus.

This report was originally published in https://www.cbre.com.sg/insights/figures/singapore-figures-q1-2023

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Q4 2022 Singapore Figures report provides the latest commentary and data on net absorption, rents, vacancy, supply and other key metrics in Singapore's office, business parks, retail, residential and industrial markets, along with an analysis of real estate investment activity.

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