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When it comes to investing in a condo, having proper financing in place is crucial. Luckily, Singapore has a variety of mortgage options available. However, it is important to keep in mind the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan a borrower can take based on their income and current debt obligations. To ensure that you are making the best financial decisions, it is recommended to work with trusted financial advisors or mortgage brokers who can provide guidance on navigating the TDSR. By doing so, investors can avoid over-leveraging and make well-informed choices about their financing options. Additionally, keeping an eye on New Condo Launches can also help investors stay updated on the latest opportunities in the market.
The latest Emerging Trends in Real Estate Global Outlook for 2021, released by PwC and the Urban Land Institute (ULI) on March 12, highlights the top concerns among property investors in the Asia Pacific (APAC) region. Low yields and “sluggish” transaction volumes have emerged as the key issues facing the industry.
The report gathers insights from global asset managers, including big names like Blackstone from the US, Savills Investment Management from the UK, and CBRE Investment Management. More than 70% of survey respondents cited low yields, persistently high interest rates, and geopolitical tensions as their top concerns.
Additionally, the report notes that despite challenges, Asia Pacific continues to be an attractive diversification strategy for industry leaders due to its population growth, demographic metrics, and divergent monetary policies, such as Japan’s decision to increase short-term interest rates.
In 2020, APAC saw a 13% year-on-year increase in real estate transactions, reaching a total of US$173.5 billion ($231.3 billion). This outperformed other regions such as Europe, Middle East, and Africa (EMEA) with 12% year-on-year growth and the Americas with 11% year-on-year growth.
However, as Europe and North America prepare for a new capital markets cycle, APAC is expected to continue experiencing sluggish transaction volumes. The drop in transaction volume in APAC last year was a result of reduced liquidity. In China, transactions decreased by 25% year-on-year to US$418.3 billion ($557.6 billion), and Hong Kong SAR saw a 1% year-on-year dip to US$15.7 billion ($20.9 billion).
On the other hand, European investors have a different set of concerns. The top three prevailing worries among asset managers in the region were international political instability (85%), further escalation of the war (83%), and Europe’s economic growth (77%).
Data from MSCI, a renowned US-based research and data analytics company, shows that US commercial property prices stabilized in 2020, with a slight decline of 0.7% by the end of the year. As a result, investors may turn their focus and capital towards these regions in the coming months.
The report also reveals that data center assets are highly rated for investment and development prospects across all three regions in 2025. According to research firm Green Street, global demand for data centers reached record levels in 2020, with asking rents growing at a double-digit rate. MSCI’s latest research also predicts a standout year for the asset class in 2024, with a 60% increase in the US for existing data center acquisitions through single property and portfolio deals.
In September 2020, 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 recorded in APAC and globally in 2020.