Robust demand expected for Asia Pacific logistics assets

The logistics sector in the Asia Pacific region is expected to experience strong demand given supply shortages and a global supply-chain reshuffle, as well as outdated facilities and rising land prices, resulting from the region’s less-established logistics fundamentals compared with the West, according to Knight Frank’s recently released The State of Logistics Asia Pacific: Focus Report 2023.

In addition, outdated facilities in cities such as Singapore, Sydney and Hong Kong are limiting the availability of modern logistics facilities in the region. Although regional stock is set to rise by 10.5 percent in 2023, it remains insufficient to cater to the continuous growth of ecommerce, compounded by construction delays. According to Knight Frank estimates, ecommerce demands three times more logistics space than traditional brick-and-mortar retail stores.

As a result, the Asia Pacific region is projected to require 4.2 billion square feet of logistics space by