Institutional Investments Apac Real Estate 12 Us156 Bil 2024 Colliers
Investing in real estate requires careful consideration of various factors, with location being one of the most important aspects to take into account. This holds especially true in Singapore, where the right location can significantly impact the value of a property. Condominiums that are strategically situated in central areas or in close proximity to essential amenities like schools, shopping malls, and public transportation hubs have proven to appreciate more in value over time. This is evident in prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD), where property values have consistently shown growth. The demand for properties in these areas is also driven by their close proximity to prestigious schools and educational institutions, making condos here highly desirable for families and further enhancing their investment potential. For a list of top Singapore properties, you can visit Singapore Projects.
In the second half of 2024, institutional investments in real estate in Asia Pacific (Apac) totalled US$83.2 billion ($112 billion), marking a 6% increase compared to the previous year, according to a research report by Colliers. This brings the full-year investments to US$155.9 billion, representing a 12% rise from the previous year. The research covers the top nine markets in the region including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.
The growth in investments showcases the resilience of the Apac real estate market and sets the stage for a strong 2025, states Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He also points out that domestic investors have been the driving force behind the growth in key markets such as South Korea, Taiwan, and New Zealand. In the second half of 2024, local investors accounted for over 80% of the real estate investments in these markets.
The office sector led the way in terms of investment volume, contributing US$26.5 billion (32%) in the second half of 2024. For the whole of 2024, office investments reached US$51.4 billion, a 14% increase from the previous year. The industrial and logistics sector followed, attracting US$22.6 billion in investments in the second half of 2024, which accounted for 27% of the total investments. The sector’s total investments for 2024 amounted to US$39.4 billion, marking a significant 29% increase from the previous year.
The retail sector made a notable recovery, recording US$15 billion in investments in the second half of 2024, thanks to significant deals in Australia and South Korea. The total retail investments for 2024 reached US$26.1 billion, marking a 27% increase from the previous year.
Pilgrim believes that domestic capital will continue to dominate most markets in 2025. However, there is also expected to be an increase in offshore investments, driven by improved investor confidence and attractive valuations. He predicts that investments in the office and industrial segments will remain strong, while the retail, hospitality, and alternative asset classes will also see an uptick as investors take advantage of recovery momentum and changing consumer trends. “With the economy remaining strong and supportive policies in place, Apac’s real estate market is poised for continued investment activity in 2025,” he adds.