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CBRE professionals in Asia Pacific observe that investor risk appetite remains low amid a delayed recovery in investment activity. A majority of respondents expect a recovery from Q2 2024 onwards, amid limited expectations of interest rate cuts in the first half of 2024.

Selling pressure persists across most of the region, with the primary exception of India which is receiving increased buying interest from investors. Most investors – excluding private investors and institutional investors/LPs – also have higher intentions to sell than in Q1 2023.

The survey reveals that the price gap is widening for assets with strong fundamentals, such as multifamily, institutional-grade modern logistics facilities, prime shopping malls, cold storage and data centres.

While institutional-grade logistics remains the most popular sector for investors, interest in retail has increased. Slow re-pricing is prompting investors to seek alternative or niche sectors, with real estate debt strategies gaining traction among alternatives.

Cap rates are set to expand across Asia Pacific, reflecting a prolonged high interest rate environment, and as re-pricing lags behind the US and Europe.

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-cap-rate-survey-2023-q3

Singapore’s retail e-commerce market is projected to grow at a 9.9% CAGR from 2022 to 2027, from S$5.8 billion in 2022 to a size of S$9.2 billion in 2027. Emerging trends such as shopping festivals, live selling and online grocery shopping have presented unique challenges for businesses in managing their logistics supply chain. With the adoption of omnichannel retail models and the outsourcing of last mile deliveries to 3PLs, the need for strategically located warehouses becomes paramount.

This report seeks to explain how the logistics sector is positioned to capture e-commerce demand, as well as potential recommendations for landlords and occupiers as they seek to future proof their logistics real estate portfolio.

This report was originally published in https://www.cbre.com.sg/insights/reports/the-evolution-of-e-commerce-and-its-impact-on-singapore-logistics-real-estate

With carbon reduction deadlines looming and regulations tightening, more businesses are adopting fast-evolving technologies to measure, monitor and manage their emissions and guide future sustainability decisions.

Sustainability technologies will account for the biggest share of increased tech budgets for both occupiers and investors over the next three years, according to JLL’s survey of 1,000 companies. Over two thirds of occupiers say tech that helps them to manage and report on their sustainability progress is a top budget priority.

Globally, 45% of occupiers and 62% of investors surveyed plan to adopt energy or emissions management tech in the coming year. Another 62% of investors are interested in tech that supports sustainability monitoring and reporting while evaluating climate risk in portfolio planning is an emerging area.

“Tech is a critical enabler for companies to better understand how they’re doing in terms of their net zero goals through from flagging risks in their portfolio to monitoring their day-to-day operations,” says Ramya Ravichandar, Vice President, Technology Platforms - Smart & Sustainable Buildings at JLL.

“There’s now a mature market to address companies’ sustainability reporting and management needs and ensure they can comply with incoming public disclosure regulations such as California’s new Climate Corporate Data Accountability Act.”

More than three years after the onset of COVID-19, Singapore retail sales have recovered and exceeded pre-pandemic levels. However, foot traffic and retail rents have yet to fully recover. CBRE’s proprietary study finds that consumers are now visiting malls less frequently but for longer durations. Consumption patterns have also changed, driven by the proliferation of e-commerce, rising income levels and increased focus on wellness and ESG.

This report identifies the main trends shaping Singapore’s retail property market in the post-pandemic era and provides recommendations for retail occupiers and landlords to navigate the structural shifts and cyclical recovery of Singapore’s retail market. Government initiatives, the return of tourist spending and a wider selection of locations are also providing opportunities to all stakeholders.

This report was originally published in https://www.cbre.com.sg/insights/viewpoints/singapore-retail-in-the-post-pandemic-era-trends-and-opportunities