Singapore tops MSCI Report as most active city in Q1 2023

Emerging Destinations and Shifting Rankings Marked Q1's Most Active Metros. 

Singapore emerged earns the top spot in the Most Active Metros of Q1 2023 in MSCI Asia Pacific Capital Trends report. Tokyo and Hong Kong followed closely in the rankings, showcasing the dynamic investment landscape within the Asia Pacific region.

The report revealed significant shifts in the Q1 ranking of major cities, with nearly half of the top 25 experiencing increased investment activity, including some lesser-known destinations. This trend indicates a growing interest in exploring diverse investment opportunities across the region.

In Singapore alone, the office sector attracted considerable international investment in 2022, albeit experiencing a slower start to the year. Regional malls, on the other hand, had emerged as an attractive option for investors, offering higher income returns and capturing their attention.

In China, Shanghai faced a steep decline of 67% in investment activity during the first quarter. However, several Tier 1 and 2 cities, including Beijing, Shenzhen, Wuhan, Hangzhou, Nanjing, Tianjin, and Chengdu, recorded gains in investment activity. 

Aside from Shanghai, other prominent gateway cities in the region, such as Seoul, Melbourne, and Brisbane, suffered significant declines in deal volume. The office and industrial sectors were mainly affected in these cities. However, Sydney managed to offset its descent by selling the Waldorf Astoria to the Tattarang Group.

The Asia Pacific investment landscape has shown interesting dynamics in the top 10 cities. Full-service hotels have emerged as attractive investment opportunities, with notable acquisitions like the Kimberley Hotel in Hong Kong and the Rihga Royal Hotel in Osaka. However, Seoul experienced a surprising lack of major hotel trades exceeding $10 million, reflecting diverse investment patterns in the region. 

Japan, meanwhile, stood out with increased deal volume in the industrial sector, exemplified by transactions such as ESR Ichikawa DC and Logiport Kazo, solidifying its position as a key player in industrial real estate.