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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

The real estate market in the Asia Pacific (APAC) region continues to exhibit robust growth on a global scale, despite the challenges posed by rising interest rates and housing crises in numerous countries. Significant technological progress in APAC economies has catalysed transformation within the real estate sector, with digitalisation and sustainability integration gaining momentum. These changes have also concurrently influenced the development of real estate projects within the region.

Globally, the real estate sector is increasingly embracing environment, social and governance (ESG)-driven innovations as a solution to issues such as escalating carbon emissions. This shift is evident in the updated real estate regulations within the APAC region for 4QFY24. Several APAC economies, including China, Hong Kong and Japan have implemented guidelines promoting green infrastructure and technology integration to confront this challenge.

Furthermore, commercial and industrial real estate is significantly rising in the APAC region despite constrained liquidity. In the housing segment, countries such as Australia, Singapore, China, India and Hong Kong have prioritised strategic reforms and regulations to address the housing demand. Notably, India and Singapore have initiated advancements within the retirement homes segment, catering to the needs of senior citizens seeking accommodation.

In spite of the prevailing challenges, APAC economies offer an attractive prospect for investors due to regulatory updates across various asset classes and types. These economies are predicted to play a pivotal role in channeling regional investments and fostering development in the forthcoming months.

Office: A rise in site inspections and enquiries failed to translate to an increase in leasing activity in Q1 2024 due to occupiers' cost cautious stance and the first quarter historically being a quiet period for transactions. Occupiers are likely to retain a cautious attitude towards spending and location selection in the near term.

Retail: Leasing was dominated by expansion, with upgrading and relocation also picking up. Demand was led by the luxury and F&B sectors. Although retailers continue to be location sensitive, markets with tight availability are seeing demand spill over to secondary areas.

Logistics: Demand moderated this quarter during what is a traditionally quiet period for transactions. Leasing activity was constricted by stricter capital expenditure controls due to moderating sales growth. 3PL occupiers continued to display steady demand, supported by cost optimisation and outsourcing.

Investment: Asia Pacific commercial real estate investment volume fell by 4% q-o-q to US$24 billion, primarily due to a decrease in industrial investment. Delays to much anticipated interest rate cuts prompted investors to stay on the sidelines, with most buyers opting to wait for additional repricing opportunities as the negative carry situation persists.

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-figures-q1-2024

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