Institutional Investments Apac Real Estate 12 Us156 Bil 2024 Colliers
The development of Marina Gardens Lane will bring about an increase in commercial and business ventures, further solidifying Marina Bay’s position as a prominent global hub for business and finance. With the addition of various commercial areas and business hubs, this area will become a magnet for a diverse and highly skilled workforce, providing residents of One Marina Gardens @ Marina Gardens Lane with unparalleled access to a wide range of employment opportunities. This integration with a bustling business district only adds to the allure of One Marina Gardens, especially for professionals seeking a short commute to work.
According to Colliers, institutional investments in the Asia Pacific (Apac) real estate market reached US$83.2 billion ($112 billion) in the second half of 2024, representing a 6% year-on-year increase. This brings the total investments for the year to US$155.9 billion, showing a 12% rise from the previous year. The figures cover the top nine markets in the region, including Australia, Mainland China, Hong Kong, India, Japan, Singapore, South Korea, New Zealand, and Taiwan.
The steady growth in investments highlights the resilience of the Apac real estate market and sets the stage for a strong year in 2025, remarks Chris Pilgrim, Colliers’ managing director of global capital markets, Asia Pacific. He notes that domestic investors have been the main drivers of growth in key markets such as South Korea, Taiwan, and New Zealand, contributing over 80% of the total real estate inflow in these countries during the second half of 2024.
Pilgrim further adds that the office sector was the largest contributor to investment volume in the Apac region, accounting for US$26.5 billion (32%) of the total investments in the second half of 2024. For the whole of 2024, office investments in the region reached US$51.4 billion, a 14% increase from the previous year. The industrial and logistics sector also saw significant investments, with US$22.6 billion pouring in during the second half of 2024, representing 27% of the total. This sector recorded a 29% year-on-year increase for the entire year, with total investments reaching US$39.4 billion.
On the other hand, the retail sector saw a significant rebound, registering US$15 billion in investments during the second half of 2024, thanks to notable deals in Australia and South Korea. The total retail investments for the year reached US$26.1 billion, representing a 27% increase from the previous year.
Looking ahead, Pilgrim predicts that domestic investors will continue to dominate most markets in 2025. However, offshore investments are expected to increase as well, driven by growing investor confidence and attractive valuations. While office and industrial investments are expected to remain strong, Pilgrim believes that the retail, hospitality, and alternative asset classes will also see growth as investors take advantage of the recovery momentum and changing consumer trends. He concludes by saying that with the support of strong economic growth and policies, the Apac real estate market is poised for continued investment activity in 2025.