Technology and property are, in some senses, bound to be at odds, so it is understandable the real estate industry has traditionally resisted technological change. Change is being thrust upon that industry, however, by investors, tenants and employees, meaning the threat of the dreaded disruption is severe.
From the Current Issue
For investors seeking value-added exposure in their real estate portfolios, the Asia Pacific region offers an attractive array of investible structural trends. The region is in the midst of an era of unprecedented demographic change and technological disruption.
Of the almost US$1 trillion spent on commercial real estate around the globe in the 12 months between the start of April 2018 and the end of March 2019, one-third involved capital from cross-border investors.
Forecasts, whether explicit or implicit, underwrite every investment decision. Forecasting is particularly important in real estate because capital commitments are often long term, assets are high value, and transaction costs are high.
Despite geopolitical-induced market volatility and fears of a global slowdown, the nonlisted real estate industry in the Asia Pacific region has continued to show robust fundamentals — a sign that investors still see real estate as an important allocation within their portfolios, at a time when they are looking to diversify globally.
A total of 23 funds reported final closings during the April–June period, raising an aggregate of US$19.4 billion. The total marked the lowest second quarter production since 2013, when fundraising totalled US$18.2 billion.
While the global property sector posted quite decent returns (up 1.7 percent) amid broader market turbulence (down 1.9 percent), Asia Pacific property stocks were once again battered during August, down 5.1 percent, as the region was led lower by tensions in Hong Kong and a further ratcheting up of the trade war between the United States and China.
Escalating economic uncertainty, the US-China trade dispute and disappointing manufacturing sector data have prompted logistics occupiers to become more cautious toward expansion, according to CBRE’s Asia Pacific Real Estate Market Outlook 2019: Mid-Year Review.
The CFA Institute has released the latest iteration of its Global Investment Performance Standards (GIPS) — standardised best practices for investment performance reporting and presentation by asset managers.