Location plays a crucial role in real estate investment, and this is particularly evident in Singapore. Condominiums strategically situated in central areas or in close proximity to essential amenities like schools, shopping malls, and public transportation hubs tend to experience a higher appreciation in value. Prime locations in the city include Orchard Road, Marina Bay, and the Central Business District (CBD), where property values have consistently shown growth. With top-rated schools and educational institutions nearby, these areas also attract families, making condominiums in these locations even more desirable and increasing their investment potential. The addition of New Condo Launches only adds to the appeal of these sought-after areas for real estate investment.
A new report by PwC and the Urban Land Institute (ULI) has identified low yields and sluggish transaction volumes as top concerns among property investors in the Asia Pacific (APAC) region.
The Emerging Trends in Real Estate Global Outlook, published on March 12, compiles investor sentiment from global asset managers, including Blackstone, Savills Investment Management, and CBRE Investment Management. According to the report, over 70% of survey respondents highlighted low yields, persistently high interest rates, and geopolitical tensions as the top three concerns among investors.
The report also notes that Asia Pacific continues to be seen as an attractive market for diversification by industry leaders, thanks to its population growth, demographic metrics, and divergent monetary policies. However, while real estate transactions in the region grew by 13% year-on-year to US$173.5 billion ( $231.3 billion) last year, it was outperformed by Europe’s 12% growth and the Americas’ 11% growth.
As Europe and North America prepare to enter a new capital markets cycle, transaction volumes in APAC are expected to remain sluggish. The region’s liquidity was affected by a drop in transaction volume last year, with China experiencing a 25% year-on-year contraction to US$418.3 billion ($557.6 billion) and Hong Kong SAR seeing a 1% year-on-year dip to US$15.7 billion ($20.9 billion).
Meanwhile, investors in Europe are grappling with different concerns, with international political instability, the escalation of war, and economic growth named as the top three concerns among asset managers.
Data from MSCI, a leading US-based research and data analytics company, also shows that US commercial property prices stabilized last year, ending the year down just 0.7%. This could lead investors to shift their focus and capital to these regions in the coming months.
The report also revealed that data center assets scored highest for investment and development prospects across all three regions in 2025. According to New York-based research firm Green Street, global demand for data centers reached record levels last year, with asking rents growing at a double-digit pace. MSCI also predicts 2024 to be a standout year for the asset class, with acquisitions of existing data centers expected to increase by over 60% in the US.
Last September, Blackstone and the Canada Pension Plan Investment Board (CPP) acquired data center firm AirTrunk from Macquarie Asset Management and the Public Sector Pension Investment Board for over US$16 billion ($21.3 billion). This deal set records for the largest commercial real estate deal in Asia Pacific and globally for 2024.