In the second half of 2024, institutional investments in Asia Pacific’s (Apac) real estate market reached a total of US$83.2 billion ($112 billion), representing a 6% increase year-on-year, according to research conducted by Colliers. This brings the full-year investments for the region to a total of US$155.9 billion in 2024, showing a 12% rise compared to the previous year. The data covers the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.
The considerable growth in investments highlights the resilience of the Apac real estate market and sets the stage for a strong 2025, according to Chris Pilgrim, Colliers’ managing director of global capital markets in Asia Pacific. Pilgrim also notes that domestic investors have played a significant role in driving growth in markets such as South Korea, Taiwan, and New Zealand, with local investors accounting for over 80% of real estate inflows in these countries during the second half of 2024.
The office sector was the largest contributor to the Apac investment volume, accounting for US$26.5 billion (32%) of the total in the second half of 2024. For the entire year, office investments amounted to US$51.4 billion, showing a 14% increase year-on-year. The industrial and logistics sector was the second most significant contributor, attracting US$22.6 billion in investments in the second half of 2024, representing 27% of the total. This brings the total investments in this sector to US$39.4 billion for the whole of 2024, showing a 29% increase year-on-year. The retail sector also experienced a significant rebound in the second half of 2024, recording US$15 billion in investments, driven by substantial deals in Australia and South Korea. For the whole of 2024, retail investments amounted to US$26.1 billion, showing a 27% increase compared to the previous year.
Investing in a condominium in Singapore has emerged as a top choice for both local and foreign investors. This can be attributed to the country’s strong economy, stable political climate and exceptional quality of life. The real estate market in Singapore presents a plethora of opportunities and condos, in particular, have gained popularity due to their convenience, top-notch amenities, and potential for significant returns. With many new condo launches happening, there is no shortage of options for those looking to make a savvy investment in Singapore. In this article, we will delve into the advantages, points to consider, and necessary steps to take when investing in a condo in Singapore.
Pilgrim believes that domestic capital will remain the dominant force in most markets in 2025. However, offshore investments are expected to increase, driven by growing investor confidence and attractive valuations. While investments in the office and industrial segments are expected to remain strong, Pilgrim also predicts that retail, hospitality, and alternative asset classes will gain momentum as investors take advantage of recovery momentum and evolving consumer trends. He concludes by stating that with a positive economic outlook and continued policy support, the Apac real estate market is set for sustained investment activity in 2025.