In the last quarter, inbound cross-border investment into Singapore totaled US$756.8 million (S$1.017 billion). (Photo: Samuel Isaac Chua/The Edge Singapore)
Singapore is set to rank among the top three real estate investment destinations in the Asia Pacific region for cross-border capital throughout 2024, securing approximately 11% of the region’s cross-border investment.
These insights come from a market report on Asia Pacific cross-border capital trends, published by Knight Frank on July 30.
Australia is projected to take the lead, attracting 36% of the region’s total cross-border investment capital this year. Japan is expected to follow, drawing 23% of the capital, with Singapore completing the top three investment hotspots.
Knight Frank forecasts that 48% of Singapore’s inbound real estate investment will be directed towards the office sector, with 31% allocated to industrial assets. The remaining investment will be split between retail (19%) and hotels (2%).
The US$756.8 million in cross-border investment during the last quarter was largely driven by PAG’s acquisition of Mapletree Anson from Mapletree Commercial Trust for US$567.5 million.
Knight Frank highlights hotels and mixed-use developments as key targets for opportunistic strategies. Additionally, some hotel properties and Grade-B/Grade-C office buildings present attractive value-add opportunities. The consultancy suggests that investors should watch for “strategic partnerships” between investors and developers aimed at enhancing or redeveloping these assets for greater yields and capital appreciation.
Victoria Ormond, head of global capital markets research at Knight Frank, notes that private capital is expected to play a “significant” role in global investment for the rest of the year, as debt markets influence overall market conditions.
Christine Li, head of research for Asia Pacific at Knight Frank, predicts a six- to nine-month window where global capital can take advantage of current pricing and reduced competition before the expected market recovery is fully realized. She also anticipates that outbound capital from Japan and Singapore will be among the leading sources of real estate investment in 2024, with investors focusing on sectors and assets that show “structural tailwinds.”