Knowledge Hub

Asia Pacific Living Sector: Case for Investment (CBRE)
17 September 2024

Amid a range of cyclical and structural headwinds, including increased adoption of hybrid working arrangements, a slowdown in global economic growth and elevated interest rates, investor preferences for sectors such as office and logistics have weakened over the past few years. In contrast, fundamentals in the region’s living sector have remained robust, and this has spurred stronger investor interest in multifamily and other living-related asset types.

Since 2019, the living sector has accounted for just 6% of Asia Pacific commercial real estate investment volumes, compared to 44% in the US and 27% in Europe over the same period. This suggests that the development of the living sector is at a relatively nascent stage in Asia Pacific, with plenty of room for growth.

Japan, Australia and mainland China are Asia Pacific’s largest markets in terms of investment volumes in the living sector, while interest is growing in Hong Kong SAR and Singapore, particularly for more niche co-living and student housing subtypes.

There are a number of demand drivers making the living sector ripe for investment: Asia Pacific is home to a diverse landscape of investable residential assets, and the mobile population is generally trending upward over the long term. Challenges around home ownership affordability may push more buyers to the rental market, while rental growth can also provide investors with a hedge against inflation in the long run.

This report explores the investment trends and growth opportunities in the Asia Pacific living sector, and analyses the opportunities and challenges, investment trends and yields, and supply and vacancy metrics in key living sector markets such as Japan, Australia, mainland China, Hong Kong and Singapore.

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Mindspace Business Parks REIT - ESG Report 2023-24
13 September 2024

Mindspace Business Parks REIT Group is proud to present its third ESG report for the Financial Year (FY) 2024. Sponsored by the K Raheja Group, Mindspace Business Parks REIT (“Mindspace REIT”) and its Asset SPVs (hereafter referred to as “Mindspace REIT Group” or “Mindspace REIT” or “Group” or “we” or “us” or “our Entity”) are defining the future of efficient and equitable workspaces that are designed around the pillars of occupant wellness and sustainability.

Guided by an impact led ESG strategy, we encourage broader stakeholder participation to expand the reach of our sustainability practices and catalyze change across the larger ecosystem beyond our properties. As we grow our footprint to accelerate long-term value creation for our stakeholders, we continue to be powered by our ESG strategy.

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Asian Market Outlook - September 2024 (B&I Capital)
09 September 2024

Continued soft inflation and employment data in the US has changed market leadership as expectations for several Federal Reserve Fed Fund rate cuts has led to a strong rotation from large cap tech into lagging sectors including REITs which are seen as beneficiaries of lower rates. The FTSE EPRA Nareit Asia USD Dev Net TR rose 6.34% in July. Our active markets:

Japan, +9.5%: BoJ Governor Ueda raised short term rates, with a following press conference that was both hawkish and confusing resulting in a lot of volatility until now. JREITs have performed much better relatively and are up in USD terms since the move. Bank stocks, beneficiaries of higher rates, moved up initially after Ueda’s comments but then lost nearly 25% in two days as rate expectations have changed with global macro conditions continuing to moderate.

Australia, +3.8%: The RBA announced no change to policy rate in its August 6 meeting and pushed back on expectations for a near-term OCR cut given persistently high inflation caused by high labour costs. We expect Goodman Group to show solid results including decent guidance due to strong contribution from its growing Data Center developments. We will probably increase our underweight should earnings be well received next week.

Hong Kong, +1.5%: Expectations going into results are extremely low especially after Hang Lung Properties’ DPS cut by 1/3rd due to weak sales particularly in China. We attended Link REIT’s HK and Shenzhen asset tour and noticed weak attendance from buyside firms as interest in the market is at extremely low levels despite cheap valuations.

Singapore, +6.2%: SREIT results were in line with expectations and dividend growth has been stunted by higher interest costs. Given the outlook for rates globally, rates in Singapore will follow as the MAS does not set interest rate policy directly.

The bottom line: REITs have been trading up since the US CPI print on July 11 on the back of a reset in rates expectations and decent earnings.

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GPR/APREA Index Series Rebalancing
03 September 2024

Please find below the rebalancing results (effective 23 September 2024 start of trading) for the:

GPR/APREA Investable 100 Index
GPR/APREA Investable REIT 100 Index
GPR/APREA Composite Index
GPR/APREA Composite REIT Index (indicated with an asterisk)

GPR/APREA Investable 100 Index

Decarbonizing Asia Pacific REITs
02 September 2024

Asia Pacific REITs are leading the charge in sustainability, driving the decarbonization of the region's real estate. With over 200 REITs and a market cap surpassing $250 billion, they are setting new standards for green assets and aligning with net-zero goals.

However, climate risks and regulatory pressures loom large, making it imperative for REITs to innovate and collaborate to safeguard their assets and seize the massive opportunity in sustainable growth. Learn how APAC REITs are navigating these challenges and pioneering a resilient, green future.