Melbourne has jumped ahead of Sydney as first in investment and first in development prospects for 2019, according to the latest Emerging Trends in Real Estate Asia Pacific report, jointly published by the Urban Land Institute (ULI) and PwC.
Singapore follows in second for investment and eighth in development. Sydney is third in investment and third in development. Tokyo and Osaka rank fourth and fifth for investment, but fourth in development and sixth in development, respectively.
Looking at the Asia Pacific region as a whole, ongoing competition among investors to place capital is continuing to shape how the sourcing of assets is approached.
Among the trends in the Asia Pacific region, the report cites are the following:
- Logistics facilities continue to be a go-to investment: The only sector where investor opinions were uniformly bullish, investment allocations to the sector have risen significantly in 2018.
- Co-living as a template for future housing: As cities become denser and housing costs rise, more developers are looking to co-living as a way to pack more people into smaller areas.
- Capital flows remain strong: The ongoing buildup of liquidity across the Asia Pacific region still leads to huge sums of money crossing borders, to be invested in foreign real estate assets. Strong outflows in the region seem certain to continue, especially with new reserves from Japan likely to enter the mix in 2019.
