APREA Real Assets Bulletin – February 2024

The real estate market in the Asia Pacific (APAC) region has shown remarkable resilience and adaptability despite the rapidly changing global landscape. Geopolitical advancements in APAC economies have led to a transformation of the real estate sector, with technology and sustainability integration gaining traction. These changes have also impacted the development of fast-paced projects.

As the real estate industry around the world catches up with technology-led innovations, there is a shift towards environmentally friendly building practices due to rising carbon emissions. This shift is evident in the updated real estate regulations in the APAC region for 3QFY24. Many APAC countries, such as China, Singapore, Australia and Japan have introduced green infrastructure and technology-integrating guidelines to address this challenge.

Further, countries like Australia and Japan have shifted their focus from specialised asset classes, such as data centres and cold storage, to Build-to-Rent asset types. While demand from occupiers has weakened due to tighter liquidity, investors have shown a keen interest in commercial and industrial real estate. Moreover, a new theme of inclusivity and equal housing rights has emerged in economies such as Hong Kong and Japan, which is expected to impact other APAC countries in the coming years.

Despite the ongoing challenges, APAC economies present an attractive opportunity for investors due to regulatory updates across various classes and asset types. These economies are expected to play a crucial role in channelling regional investments and development.

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