In Focus

APAC markets show ‘unrelenting’ logistics demand as firms run short of warehouse space

ESR Australia recently bought a portfolio of 45 properties for a whopping US$2.9b.
7 days ago

APAC markets show ‘unrelenting’ logistics demand as firms run short of warehouse space

ESR Australia recently bought a portfolio of 45 properties for a whopping US$2.9b.
7 days ago

These two APAC markets saw the highest surge in commercial property investments in Q1

Investments jumped 68% and 280% in Australia and Singapore, respectively.
14 days ago

How investors, landlords can unlock US$15.3b worth of value stuck in ageing properties

Half of the properties in APAC prime locations is over 20 years old.
22 days ago

Hong Kong office vacancy rate hits 15-year high as banks continue aggressive downsizing

Standard Chartered, DBS, Deutsche Bank and Societe Generale cut massive floor spaces.
29 days ago

APAC data centre net absorption hits record high in 2020

Total net absorption doubled in Tokyo, Sydney, Singapore and Hong Kong SAR, reaching 322 megawatts (MW).
1 month ago

Global residential prices growing at their fastest rate in three years

New Zealand posted the highest annual price growth in APAC at 19%.
1 month ago

APAC investment volume to rise by up to 20% this year

Thanks to growth in logistics, data centres, and multifamily investments.
1 month ago

Operators, investors on the lookout for distressed hotel assets in Japan

The distressed opportunities make great entry points into Japan’s promising hospitality market.
2 months ago

13 real estate themes to watch out for as Melbourne recovers post-pandemic

Stakeholders in Melbourne’s property markets have reason to be optimistic.
2 months ago

Singapore's real estate sector may see growth in 2021: industry leaders

Singapore's FY2021 Budget may indirectly impact the real estate and properties industry.
2 months ago

4 major themes that will drive APAC property markets in 2021

Asian tech companies dominating office leasing demand is one.
2 months ago

Australia, Korea, Singapore office markets see renewed investors' interest post-pandemic

Meanwhile, Vietnam and Japan attract investors in the logistics sector.
3 months ago

Why the future of office spaces is still mired in uncertainty

JLL says both employers and employees themselves still don't know exactly what they want.
3 months ago

5 questions troubling real estate this year

At the start of 2021, the real estate industry has a lot to mull over.
3 months ago

3 in 5 APAC investors to snap up more real estate this year

Tokyo is the most preferred city for cross-border investment.
3 months ago

APAC markets attract massive data centre investments

Japan and Singapore recently witnessed data centre deals worth over $350m in total. The investment arm of French insurer AXA acquired its first Japan data center in early December, a sign of strong investor appetite for the real estate sector amid a boom in internet usage. AXA bought the server facility, one of Tokyo’s largest data centers, for approximately US$210 million. “Data centers are no doubt becoming a key asset in many investors’ portfolios due to the ever increasing number of internet users, as well as greater connectivity across Asia Pacific,” says Regina Lim, Head of Capital Markets Research, JLL Asia Pacific. The AXA deal signals a wider move from investors toward sectors that have fared better during the downturn, such as logistics and life sciences real estate. Internet usage for cloud-computing needs are surging, with tech firms such as Google, Amazon and Microsoft reporting substantial increases for their services. According to business insights provider Research and Markets, cloud-computing revenue will increase 87 percent from 2021 to 2025, while data center revenue will grow 22 percent in Asia Pacific. The AXA transaction also came on the day Equinix, a digital infrastructure firm, announced that it is investing US$144 million in developing its fifth data center in Singapore. Earlier in the year, Equinix announced a US$1 billion joint venture with Singapore sovereign fund GIC to build two data centers in Tokyo and another in Osaka. Advantage Japan “In Asia Pacific, Singapore, Hong Kong, Sydney, and Tokyo are typically the four main data center hubs, as these regions have been selected based on their economic size and population,” says Asaki, Senior Director of Capital Markets, JLL Japan. “As data protection became more important and data center-sovereignty – meaning the application of laws and regulations around it – gets increasingly essential, Japan’s stability in terms of infrastructure, power supply and security made it more popular as a location,” he says. Japan’s reputation as a traditional safe haven has also resonated with investors looking to diversify their portfolios away from offices. “Investors still see offices as a core asset but they are coming to us to increase their exposure to alternative assets such as data centers. The prime locations for investors to look out for are Otemachi in Central Tokyo, Inzai in East Tokyo and Fuchu, Tama and Mitaka districts in West Tokyo.” Singapore’s land pressure Likewise, Singapore is a hot spot for similar reasons. The likes of Facebook and Zoom have opted to set up their data centers in the city-state, with the former building its first in Asia there, which will be ready by 2022, while Zoom opened theirs in April this year. “Not only are data centers getting more mainstream now, they are seen to have great resilience and growth prospects for investors, especially for those located in stable economies,” Lim says. However, she points out that Singapore’s moves to halt the construction of data centers on the land-scarce island could pave the way for other countries in Southeast Asia to step up their efforts and better appeal to investors. Singapore currently accounts for nearly 60 percent of Southeast Asia’s data center supply, according to data center provider Digital Realty. But neighbouring Indonesia is poised to gather force, with reports projecting that its data center market could see US$1.5 billion in cumulative investments through 2025. The country also got a boost when Google confirmed in March that it is planning to open one in Indonesia’s capital next year. “The question is whether there are enough data centers for investors in highly sought after markets, and how can they work with other partners to construct new ones,” says Lim.  
4 months ago

Follow the leader: Why investors now foray into infrastructure

Private investors are following governments and are currently raising US$150 billion for infrastructure.
4 months ago