Singapore commercial real estate to attract US$5.5 bil of new capital in 2017

SINGAPORE (March 15): Singapore could attract some US$5.5 billion (S$7.8 billion or RM24.5 billion) of new capital available for global real estate investment in 2017, according to a report released Wednesday by Cushman & Wakefield.

The Great Wall of Money report tracks the amount of newly-raised capital, including debt and equity, targeting real estate at a global level.

According to the global real estate services firm, some US$435 billion worth of new capital will be targeted at commercial real estate globally this year.

The US, China, and the UK are the top three target investment destinations in the world, with expected new capital investments worth US$153.8 billion, US$48.0 billion, and US$38.9 billion, respectively.

Singapore is ranked the 12th most targeted market.

“Singapore remains an attractive destination for investment and business, given its stable economic fundamentals and status as a gateway city to the region,” says Steve Saul, Cushman & Wakefield’s Singapore managing director.

“We see opportunities particularly in the office sector, where the boost in quality job creation will lead to more office space demand, particularly in well-conceived prime developments,” Saul adds. “The suburban retail sector remains an attractive proposition and there is also investment potential from the development of Singapore’s suburban commercial nodes.”

Capital targeting Asia Pacific accounts for 30% of the global volume at US$132 billion — overtaking the Europe, the Middle East and Africa (EMEA) region for the first time on record, according to Cushman & Wakefield.

Capital targeting EMEA shrunk 9% in US dollar terms to US$130 billion, while the Americas grew by 2% to US$173 billion.

“The growing investment interest in Asia Pacific reflects the maturity and growth of opportunities across the region, as well as the prospects for attractive returns,” Cushman & Wakefield say in a press release on Wednesday.

“Positive investment momentum in the region remains sustained and will continue to draw investor interest and ample capital,” says Saul. “As the global market cycle matures, we expect investors to be increasingly rewarded by exploring secondary markets as well as investing beyond core strategies.” —

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