The real estate market in Asia Pacific (Apac) continues to outperform its global counterparts, according to a report by Savills Research. The region’s real GDP growth has surpassed that of the US and Europe, leading to a more stable economic outlook and boosting investment and activity.
In the first three quarters of 2024, Apac saw a 4% increase in investment volumes to US$108.7 billion. The most significant growth was seen in Singapore, South Korea, and Australia, with investment volumes increasing by 74%, 71%, and 63% respectively.
Savills Research forecasts global real estate investment turnover to rise by 27% to US$952 billion in 2025 and reach over US$1 trillion in 2026. The region is expected to see a full investment recovery next year, driven by the tourism, living, and industrial sectors, particularly logistics and data centres.
Singapore is expected to follow this trend, with Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, stating that the real estate market in Singapore will mirror the global narrative. The country is also a popular destination for new overseas brands, leading to healthy demand for prime retail developments and keeping rental levels stable.
In the industrial sector, demand remains strong in key areas such as logistics, advanced manufacturing, healthcare, and data centres, which will help maintain stable rental rates and capital values in the long term. The rise in AI adoption has also led to an increase in the number of data centres being built in Singapore, with many service providers using the city-state as a launching pad to explore new sites.
As global investment and activity continue to grow, the real estate industry must adapt to changing legislative landscapes and geopolitical dynamics while prioritizing sustainable and socially responsible development to meet the needs of an evolving world, says Paul Tostevin, Savills Head of World Research.
Overall, Apac’s office sector remains attractive, commanding 37% of the region’s total real estate investment in the first three quarters of 2024, well above the global average of 23%. Singapore, China, South Korea, and Japan are the top cities in the region for office utilization, with occupancy rates exceeding 90%. The region also leads in green-certified office spaces, with tenants placing a greater emphasis on environmental, social, and governance (ESG) factors.
In summary, opting to invest in a condo in Singapore provides a range of benefits. These include a strong demand for properties, the potential for appreciation in value, and attractive rental yields. However, it is crucial to carefully consider various factors like the location, financing options, government regulations, and market conditions. By conducting thorough research and seeking expert advice, investors can make well-informed decisions and maximize their returns in Singapore’s ever-evolving real estate market. Whether you are a local investor looking to expand your portfolio or a foreign buyer in search of a stable and profitable investment, the condos in Singapore are a compelling option. With Condo as a valuable addition to your investment choices, you can take advantage of the dynamic real estate market in Singapore.
In conclusion, Savills Research believes that Apac is well-positioned for a strong investment recovery, with sectors like tourism, living, and industrial driving growth. The region’s strong office sector and emphasis on sustainable development will also play a key role in attracting investors. As global investment returns to sustained growth, the real estate industry must adapt to changing trends and maintain a socially responsible approach to meet the needs of a changing world.