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CBRE’s latest leasing market sentiment index reveals that leasing sentiment in most major Asia Pacific markets cooled but stayed in positive territory:

  • The lower level of tenant enquiries and site visits was mainly contributed by the mainland China office sector. Other markets, particularly India and Japan, continue to record robust enquiries from the retail sector.
  • While expansionary retail demand is supporting market activity, office space demand has softened since the previous survey. Demand for flexible office space weakened, especially in Australia and Southeast Asian markets.
  • Following the trend witnessed in the previous quarter, half of respondents anticipate rents and incentives to remain unchanged. Respondents in Japan held the most positive views regarding the office and retail rental outlook, while those in Greater China expected further declines in office rents.
  • Mainland China and Hong Kong SAR remain laggards in leasing sentiment, with around 40% of respondents in the former currently engaged in “stay vs go” analysis or renewal exercises, indicating low intentions to expand.
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With the Asia Pacific commercial real estate market sitting at the top of the interest rate hike cycle, attention continues to focus upon the sizable volume of outstanding senior loans due to mature; a situation which could lead to a substantial funding gap in the coming years.

CBRE estimates that there is US$257 billion of outstanding senior commercial real estate debt in Asia Pacific, leading to a projected funding gap of US$8.4 billion between 2024-2026.

CBRE expects a funding gap to arise in markets where there is still some degree of capital value decline expected over the next three years. By total volume, Australia will have the biggest funding gap (US$4.6 bln) between 2024-26, followed by mainland China (US$2.9 bln).

The gap will be highly concentrated in the office sector, with CBRE expecting some further repricing over the remainder of 2024.

This report explores the commercial real estate debt market in Asia Pacific and the factors underpinning the debt funding gap in the region, including the markets and sectors that are likely to face the biggest gap, and implications for investors.

This report was originally published in https://www.cbre.com/insights/reports/the-debt-funding-gap-for-asia-pacific-real-estate/

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The Real Estate Sentiment Index is developed jointly by Knight Frank India and the National Real Estate Development Council (NAREDCO). The objective is to capture the perceptions and expectations of industry players to gauge the sentiment of the real estate market.

The Sentiment Index Q1 2024 highlights a decadal high, indicating heightened market confidence in real estate's supply side, fueled by India's strong economic landscape.

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CBRE’s Asia Pacific view on the Global Tech Talent Guidebook explores:

  • The appeal of Asia Pacific for hiring tech talent;
  • Key considerations for companies seeking to identify markets in Asia Pacific for tech talent; and
  • Approaches to talent attraction and location that companies are adopting in Asia Pacific and how this is shaping their real estate strategies.

This report was originally published in https://www.cbre.com/insights/viewpoints/global-tech-talent-guidebook-2024-asia-pacific-view

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Singapore is one of the few APAC markets with a full ‘end-to-end’ life sciences value chain that comprises manufacturing, R&D, sales & logistics. Bolstered by supportive government policies, biomedical manufacturing has been the fastest growing among various manufacturing sectors. Strong venture capital funding and a vibrant life sciences startup ecosystem has also accelerated R&D, which has led to stronger demand for labs and expansion of manufacturing production capacity.

To date, Singapore has cultivated life sciences growth through a network of vibrant and strategically located clusters, such as Biopolis, Singapore Science Park, Tuas Biomedical Park and Kallang, giving occupiers a wide variety of options.

Although life sciences properties ranked top among preferred alternative assets for investment, such investible stock remains limited in Singapore. This paper highlights various key strategies in which investors can access the growth of this sector.

This report was originally published in https://www.cbre.com.sg/insights/reports/life-sciences-real-estate-an-emerging-asset-class-in-singapore

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