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KEY TAKE-AWAYS

  • APAC countries continue to rank highly as locations of production, particularly due to the abundant supply of low cost of labour: of the top 12 locations, half are in APAC.
  • Many of the countries that have slipped in the rankings compared with 2021 have done so due to increased costs (particularly for labour and electricity) and increased risk (economic, political and natural disaster); a number of these countries are in Europe where the war in Ukraine has had a significant impact on cost and risk factors.
  • A wide range of countries have also experienced even greater constraints in the availability of labour as unemployment rates have continued to fall; this has affected countries across all geographic regions and states of economic development albeit key production locations in emerging APAC markets continue to benefit from expanding labour pools.
  • A number of countries – particularly in Europe – have improved their ability to achieve sustainability targets, including efficient resources use and creating green economic opportunities, bolstering their longer term economic outlook and risk profile.
  • U.S. companies are bringing jobs and supply chains home at a historic pace. American companies are on pace to reshore, or return to the U.S., nearly 350,000 jobs this year, according to a report published by the Reshoring Initiative.
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Knight Frank takes a look at some of the ‘big picture’ issues impacting owners and users of real estate in the Asia-Pacific region for the upcoming year.

Global inflation in 2022 is at its highest since 1996. As most central banks in Asia-Pacific turn the screws on monetary policies to stave off inflation, growth will inevitably slow in the coming year. As monetary authorities are compelled to keep pace with the Fed's hiking cycle in addition to walking the tightrope between growth and inflation, the region's interest rates in 2023 will approach multi-year highs. 

Despite these ongoing stressors, Asia-Pacific is set to remain the world's fastest-growing region in 2023. Even as growth momentum continues to normalise across much of the region, domestic-oriented economies such as emerging Southeast Asia and India are forecast to remain supportive of overall regional growth in the upcoming year. 

As such, Knight Frank expects to see real estate markets in the region weather a period of transition as occupiers and investors review their strategies in a rapidly evolving environment.

This report was originally published in https://apac.knightfrank.com/apac-outlook

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Please find below the rebalancing results for the following GPR/APREA index series, which will become effective as of 19 December 2022 (start of trading):

  • GPR/APREA Investable 100 Index
  • GPR/APREA Investable REIT 100 Index
  • GPR/APREA Composite Index
  • GPR/APREA Composite REIT Index (indicated with an asterisk)
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At a time when many mature economies are reaching peak carbon, emissions in Asia Pacific remain on an upward trajectory as the region continues along a path of rapid urbanisation and economic growth.

Asia Pacific accounted for 53% of global carbon emissions in 2021, and has been responsible for more than 80% of global growth in carbon emissions over the past decade.

To improve transparency around the role that cites and the built environment play in carbon emission reduction, CBRE has developed the Asia Pacific Sustainable City Ranking, which measures current and future environmental resilience and its impact on commercial real estate across 28 cities in the region.

Cities are evaluated according to a range of environmental factors including greenhouse gas emission reduction, physical climate risk, water stress, air pollution, renewable energy use, green bond issuance, and green office building adoption.

This report was originally published in https://www.cbre.com/insights/reports/asia-pacific-sustainable-city-ranking-dec-2022

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Q3 2022 Investment Trends features in-depth and up to date insights on demand drivers and other key investment trends in Australia, mainland China, Hong Kong SAR, Taiwan, Japan, Korea, India, Singapore, and New Zealand.

Key Trends

  • Faster-than-expected interest rate hikes hinder acquisitions
  • Purchasing led by real estate funds and institutional buyers
  • Significant decline in logistics and hotel transactions
  • Retail deal flow picks up
  • Cross-border deals continue to rise y-o-y
  • Fund-raising remains solid
  • Investment activity is expected to weaken further

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-investment-trends-q3-2022

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