Singapore ranked second preferred city for cross-border investments

January 21, 2021

Aside from being an important hub for foreign corporations eyeing to access Southeast Asia, Singapore is also emerging as a viable alternative to Hong Kong SAR among firms establishing Asia Pacific headquarters.

Singapore is listed as the second most preferred city for cross-border investment in CBRE’s 2021 Asia Pacific Investor Intentions Survey.

Conducted in November and December 2020, the survey polled over 490 Asia Pacific-based investors.

“Singapore remains an important hub for foreign corporations looking to access Southeast Asia,” said Desmond Sim, Head of Research for Southeast Asia at CBRE.

“Although CBD rents declined in 2020, rents are forecast to display growth over the next three years, supported by low vacancy and strong demand. In fact, we expect office demand in 2021 to be fuelled by Chinese technology firms and non-bank financial services firms such as investment managers and hedge funds.”

Recommended article: Property Investment in Singapore: How to Get Started, Calculate Rental Yield and More

Aside from being an important hub for foreign corporations eyeing to access Southeast Asia, Singapore is also emerging as a viable alternative to Hong Kong SAR among firms establishing Asia Pacific headquarters.

Tokyo topped the list due to the availability of high-quality assets as well as strong liquidity.

Seoul took the third spot, followed by Shanghai and Ho Chi Minh City.

Completing the top ten list are Beijing, Shenzen, Sydney, Osaka and Melbourne.

The survey revealed that there was broad-based improvement in market sentiment, with 60% of investors planning to acquire more real estate in 2021 – which is the highest level since 2016.

“The recent commencement of vaccination programmes in several countries around the world has further boosted market confidence,” said CBRE.

Suggested read: What is a Property Bull Run and Is It Already Happening in Singapore?

Logistics emerged as the most popular sector for investment as the pandemic accelerated e-commerce consumption, boosting demand for this asset class.

Data centres also received stronger interest on the back of a surge in demand for video conferencing and other platforms to support remote working, leading to increased requirement for data storage.

The survey also noted a growing number of investors adopting Environmental, Social, and Corporate Governance (ESG) criteria in their investments.

“Nearly half of respondents, most of which came from Singapore, Australia and western markets, stated that they had already adopted ESG criteria in their investment strategies,” said CBRE.

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