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CBRE’s latest report explores the latest Asia Pacific Data Centre supply, demand and investment figures for 2022, and outlines key trends to watch for 2023.

Key highlights include:

• New supply in Asia Pacific Tier 1 data centre markets (Greater Tokyo, Sydney, Singapore and Hong Kong SAR) fell from 2021’s record-breaking 399MW to 263MW in 2022.
• Regional data centre vacancy fell to 12.4% on the back of solid demand, while leasing demand remained robust and continued to be driven by upgrading demand and ongoing expansion by hyperscalers.
• CBRE expects 765MW of new data centre stock – representing around one-third of total planned capacity – to be delivered by 2025.
• Investment demand weakened in 2022 owing to the rapid increase in financing costs and growing fears of a recession. Asia Pacific direct data centre investment turnover fell to US$1.4 billion, the lowest annual total since 2019.
• CBRE has observed signs of improvement in the investment market in recent months, with nearly US$1.7 billion of new data centre funds raised in Q1 2023. Investment demand will be increasingly focused on greenfield development of prime assets, such as data centres with higher floor loading and/or sustainability certification.

This report was originally published in https://www.cbre.com/insights/reports/Asia-Pacific-Data-Centre-Trends-H2-2022

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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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Southeast Asia (SEA) is expected to be one of the leading sources of growth for the global economy as the United States and Europe tiptoe around a potential recession. Cushman & Wakefield’s latest paper explores how SEA real estate market is positioned to develop given the latest economic and property trends. The report looks at the impact of China’s re-opening and rising interest rates and provide our views on investment opportunities, rents and capital value outlook for major property markets in SEA.

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The world is in transition. We are seeing the shift towards a low carbon economy. The transition is a response to climate change, technological innovation as well as demographic shifts. The transition to a low carbon economy requires collaboration across all sectors, from investors, regulators and customers.

At BlackRock, we believe that climate risk is an investment risk. By investing in properties that take into consideration financially material physical and transition risks, alongside other information, investors may create a more resilient and valuable portfolio. It supports responsible business practices and leads to risk-adjusted financial benefits in the long term.

Sustainable investing in real estate can be a powerful way to align positive environmental and social outcomes with financial goals. As investors, part of the decision-making process is to incorporate financially material environmental, social and governance considerations, alongside other information to enhance risk-adjusted returns.

Decarbonizing hard-to-abate sectors requires technological innovation. It requires the deployment of clean energy technologies and the decarbonization of heavy industries. Government policies and regulations also play a role in low carbon transition and help provide incentives to invest in clean technologies. It is a complex and challenging task.

Improving property design and operations is crucial to reducing carbon footprint as they become resource efficient and support healthier and livable communities. The use of renewable energy, energy-efficient design, better building materials and smart technologies are some of the ways that asset owners and managers can prioritize to add value to the property. Smart technologies can be used to monitor energy use, water consumption and other aspects of building operations. The use of renewable energy in real estate can be one of the best ways to reduce carbon footprint and reduce energy costs in the long run.

In addition to these strategies, asset owners can also focus on creating more sustainable communities. Building designs that connect to public transportation and cycling paths and incorporating amenities such as green spaces can promote a healthier lifestyle.

Overall, real estate has a significant role to play in sustainability, and by adopting sustainable practices and technologies, real estate owners can future-proof their assets by reducing their environmental impact, improving their communities, and creating a more sustainable future.

 

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