Thought Leadership

Hong Kong SAR and Singapore are both firmly established as popular locations for multinational corporates to locate their Asia Pacific headquarters.

While the two cities have always enjoyed a competitive rivalry, recent sociopolitical developments and the enactment of anti-pandemic measures, although now abated, have prompted some companies to think about their operational and physical footprint in the region.

This report compares the two markets across seven key factors:

• Influence in Asia Pacific
• Scale of financial industry
• Scale of technology industry
• ESG and green building initiatives
• Talent availability and attraction
• Office rents/price
• Office availability

The report also discusses topical issues such as:

• How the two cities are set up to develop and grow in the post-covid world
• The competitive advantages of the two cities across industries
• Whether real estate pricing and rental gaps are narrowing, and by how much
• How the two cities will evolve over the next decade with reference to government master plans

This report was originally published in https://apacresearch.cbre.com/en/research-and-reports/A-Tale-of-Two-Cities-Hong-Kong-SAR-vs-Singapore

The logistics sector in Asia-Pacific has seen increased interest from both investors and occupiers. This report highlights the prevailing trends including the diversification of demand, the continuing undersupply of logistics properties, and the implications for investors.

This report was originally published in https://www.knightfrank.com/research/report-library/the-state-of-logistics-asia-pacific-focus-report-2023-2023-10082.aspx

Real estate remains a key asset class within investors’ diversified strategies even as the turmoil in global financial markets and the instability across the capital spectrum continue to cause concerns.

That’s backed by some solid fundamentals, particularly in Asia Pacific. One, the region’s market resilience, versus its European and the US counterparts, put niche assets here on top of investors’ radar, and now, the reopening of China comes in as a shot in the arm. Two, the flight to quality - led by climate actions and return to office initiatives, has fuelled tight occupancy and rental growth across key Asia Pacific markets. Three, alternatives powered by the region’s living, logistics and life sciences sectors are luring investors with new opportunities and robust growth potential. There are several other reasons.

The moot point is the impact of rising interest rates on valuations and cap rates across key Asia Pacific markets appears mitigated, as rental growth remains powered by strong demand on the back of tight vacancy. However, it's vital today for real estate investors to proactively map the next 12 months and ensure a winning action plan to make the most out emerging opportunities in the year ahead.

Read more to find out the 2023 APAC action plan in a smart investor's diary

• Inbound investment in Singapore in 2022 reached US$7.585 bn, a marginal increase (3.4% y-o-y) from US$7.333 bn recorded in 2021.

• APAC was the largest source of capital, accounting for 72% of real estate investment into Singapore in 2022.

• Singapore’s outbound investment in 2022 reached US$28.284 bn, normalising from the record high of US$47.709 bn in 2021. Despite the drop, Singapore remained the top APAC outbound investor.

• 2022 outbound investment volumes were driven primarily by higher investment in the U.K., which saw a 120% y-o-y increase.

This report was originally published in https://www.cbre.com.sg/insights/viewpoints/singapore-viewpoint-investment-in-out-2022