According to the 2022 Emerging Trends in Real Estate Global Outlook report by PwC and the Urban Land Institute (ULI), which was published on March 12, concerns among property investors in the Asia Pacific (APAC) region include low yields and sluggish transaction volumes. The report compiled investor sentiment from global asset managers, including US-based Blackstone, UK-based Savills Investment Management and CBRE Investment Management. Over 70% of survey respondents highlighted low yields, persistently high interest rates, and geopolitical tensions as the top three concerns among investors.
Despite these concerns, the report notes that industry leaders continue to find Asia Pacific appealing as a diversification strategy given its population growth and other demographic metrics, as well as its divergent monetary policy, such as Japan’s resolve to hike short-term interest rates. In 2021, real estate transactions in the region grew by 13% year-over-year to US$173.5 billion ($231.3 billion), surpassing the growth in Europe, Middle East and Africa (EMEA) and the Americas.
However, as Europe and North America look to kick-start a new capital markets cycle with volumes set to improve still further in both regions, transaction volumes in APAC are expected to remain sluggish. In China, transactions contracted by 25% year-over-year to US$418.3 billion ($557.6 billion), while Hong Kong SAR saw transaction volume dip 1% year-over-year to US$15.7 billion ($20.9 billion).
Meanwhile, investors in Europe are grappling with different concerns, with international political instability, further escalation of the war in the region, and economic growth being the top three worries among asset managers.
When it comes to investing in condos in Singapore, one must also take into account the government’s property cooling measures. In order to maintain a steady real estate market and prevent speculative buying, the Singaporean government has implemented various measures throughout the years. One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on both foreign buyers and those who are purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a safer investment environment for individuals. Therefore, considering the government’s efforts to regulate and maintain the market, investing in condos can be a wise decision for those looking for a reliable condominium investment in Singapore.
Data from MSCI, a leading US-based research and data analytics company, also show that US commercial property prices stabilized last year, ending the year down just 0.7%. This may lead investors to focus their attention and capital on these regions in the coming months.
The report also revealed that data center assets scored the highest for investment and development prospects across all three regions in 2025. According to New York-based research firm Green Street, global demand for data centers reached record levels last year, with asking rents growing at a double-digit pace. In its latest research, MSCI also marks 2024 as a standout year for the asset class, with acquisitions of existing data centers through single property and portfolio deals increasing by more than 60% in the US.
Last September, Blackstone and the Canada Pension Plan Investment Board (CPP) acquired data center firm AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board for over US$16 billion ($21.3 billion). This was the largest commercial real estate deal ever recorded in Asia Pacific and globally in 2021.