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The GPR/APREA AsiaPac Performance Snapshot tracks the dynamics of listed real estate securities (including REITs) across 12 AsiaPac countries/regions and eight sectors, over multiple time horizons.

• Listed real estate posted the highest total return in April 2018.
• Equities and REITs were the strongest performers over the past five years.
• On a ten-year basis, REITs outpaced rival asset classes, followed by listed real estate.

With many positives now backing the Indian PE / VC story, strong 1Q numbers and the deal momentum in play, we believe that PE / VC investment activity in 2018 may eclipse the record highs seen in 2017. The changes unleashed by the Insolvency and Bankruptcy Code (IBC) have opened India to a new PE asset class of stressed assets/distressed debt, adding more wind to the already fullsails of the Indian PE/VC story. The infrastructure asset class too is expected to see a lot of investment dollars, especially in the roads sector as the government looks to privatize arterial routes to fund their ambitious roads’ capex plans. Real estate is also projected to see good investment activity, especially commercial real estate as more “REITable” platforms get built.

The soaring vacancy rates, which are in line with the continued completion of more new office buildings, have changed the recent “tenant market” situation. However, the overall 2017 market performance has indicated a sign of recovery, albeit moderately, with escalating enquiries for office expansion particularly from tenants exploiting the currently low rents. In 2018, Indonesia will move ahead with a 5.3% GDP projection, which will provide an interesting investment spot for overseas fund to come in, particularly in e-commerce and co-working business at least for the next two to three years.

Despite the Chinese New Year holiday, net absorption in the overall market still amounted to 160,900 sq ft in February on the back of relocation and consolidation requirements. Among the more notable new lettings, Kering pre-leased two whole floors (37,300 sq ft) at One Taikoo Place in Quarry Bay as part of their consolidation out of offices in Casuseway Bay, while RGA Reinsurance relocated within Swire Properties' Island East portfolio, leasing 26,000 sq ft at Dorset House at accommodate expansion plans.