Global investors eye the logistics sector across APAC, and additional updates

For PropertyGuru’s real estate news roundup, Asia Pacific’s logistics sector is set to attract substantial interest from global investors in 2025. In other headlines, Vietnam’s increasing spending on infrastructure, real estate market recovery, and other domestic factors will help the country maintain its economic expansion. Lastly, Dubai’s real estate market had a record-breaking 2024 that ended with an all-time high of 180,900 transactions valued at AED522.1 billion.

Outlook 2025: global investors target Asia Pacific industrial and logistics

The logistics sector across Asia Pacific is set to attract substantial interest from cross-border investors in 2025. Savills reports that while the performance of logistics assets has varied around the region, investor interest has remained strong and is expected to grow further next year.  In Australia, logistics yields have stabilised, which alongside stable vacancy rates and average incentives, suggests the market may be nearing its cyclical bottom. In contrast to its booming office market, South Korean logistics real estate has suffered from a glut of post-pandemic supply and elevated interest rates. Global supply chains have shifted since the pandemic in an attempt to boost resilience, often with a “China plus one” strategy. Vietnam logistics real estate has been a prime beneficiary of this trend, as well as benefitting from substantial investment in infrastructure and several trade deals. And there has been significant foreign direct investment (FDI) in Vietnam, with South Korea, Singapore, Japan, and Hong Kong the biggest investors.

Domestic factors to drive Vietnam’s GDP growth in 2025: VinaCapital

While Vietnam’s exports to the US have bolstered GDP growth this year, domestic factors, including the Government’s increasing spending on infrastructure, real estate market recovery, and consumption, will help the country maintain its economic expansion at around 6.5 percent in 2025, according to VietnamPlus. In the “Looking Ahead to 2025” report of investment management firm VinaCapital, Chief Economist and Head of Market and Research Michael Kokalari highlighted that Vietnam’s exports to the US surged by more than 20 percent this year, primarily driven by a 40 percent increase in electronics and high-tech products, marking a significant recovery from the 10 percent decline in 2023. However, the extraordinary increase in exports to the US is expected to moderate next year, partly due to the anticipated “soft landing” economic slowdown in the market.

The Dubai real estate market sets an all-time record in 2024

With new records being set throughout 2024, Dubai’s real estate market had a record-breaking year that ended with an all-time high of 180,900 transactions valued at AED522.1 billion. According to a market analysis released today by fäm Properties and cited by PropertyNews.ae, 2024 became a historic year due to significant increases of 36 percent and 27 percent, respectively, over the previous peak of 133,100 sales valued at AED411.1 billion in 2023. Developers’ first sales in the primary market increased by 30 percent year-on-year to AED334.1 billion, indicating significant demand for off-plan residences and new developments. In 2024, the number of transactions increased by 51 percent to 119,800, indicating a significant rise in developer activity and buyer confidence. Additionally, the average price per square foot increased steadily, rising by 10 percent to AED1,600.

The Property Report editors wrote this article. For more information, email: [email protected].