Winter Issue 2022 - 76

Emerging Trends: Asia Pacific
Tokyo, Singapore, and Sydney are top investment
markets in the Asia Pacific region for 2022.
Upbeat sentiment and the growing glut of undeployed
capital are expected to provide a lifeline to the strong revival
of the Asia Pacific region's real estate markets next year,
according to the Emerging Trends in Real Estate®
2022 report.
Asia Pacific
Tokyo, Singapore, and Sydney continue to rank as the top
three markets due to the similar overarching characteristics
of economic stability, market liquidity, and reliable cash
flows. Tokyo has the brightest prospects in 2022, swapping
places with Singapore, which landed first in the past
two surveys. The Japanese capital continues to benefit from
low interest rates and an economy that is largely fueled
by domestic demand, making it relatively less exposed to
outside shocks. Hong Kong, which has been rooted to the
bottom of the table for the last two years, leaped to 14th
place, fueled by a general view that the worst has passed for
the city's real estate markets.
CITY INVESTMENT PROSPECTS
" Despite upbeat sentiment on the prospect of Asia Pacific
as a region in 2022, real estate investors continue to adopt a
cautious outlook, " says Stuart Porter, Asia Pacific real estate
tax leader, PwC Japan. " The persistence of a safety-first mentality
further cements Tokyo and Singapore's positions as the
top two cities with the brightest investment prospects next
year. The long-lasting blows from the pandemic continue to
hurt developing markets, which remain at the bottom of the
table with weak investment prospects. "
Among the trends cited in the report are the following:
A more proactive approach to property management is
increasingly necessary as yields continue to tighten and competition
for assets becomes increasingly intense.
More value-add initiatives are on the horizon.
A more welcoming stance toward decentralization due to
such assets offering a price advantage that is hard to ignore
as well as the trend of hybrid working practices creating a
more spread-out workforce.
Shifting toward new economy-focused niche sectors such
as data centers, life sciences, and flexible/serviced offices to
cater to economic and demographic demand and to capture
enormous opportunities in today's volatile and unpredictable
environment.
A growing mandate for green buildings as tenants and their
workforces increasingly demand environmental, social, and
governance (ESG)-compliant
buildings.
CITY DEVELOPMENT PROSPECTS
Top Markets for Investment
and Development
Singapore ranked as the top
market.
Tokyo (first in investment,
second in development)-The
Japanese capital's enduring
popularity is attributable to a
variety of factors: a stable economy
combined with a deep and
liquid market, resilient asset
values, and a long track record
of better-than-expected returns.
Singapore (second in investment,
first in development)-
This city-state topped the
table, boosted by expectations
of supply shortages due to a
limited pipeline of new development
sites and the withdrawal
of stock from the market for
redevelopment purposes.
Sydney (third in investment,
third in development)-Even
with incoming travel for nonresi74
URBAN
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WINTER 2022
Winter Issue 2022

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