Industrial and logistics investments across Asia Pacific to flourish in 2022

As investors pick up on the growing optimism in the region, analysts forecast strong demand in expanding their portfolios

Over 20 percent of investors expect to achieve around 10 to 20 percent capital value gains in value-add industrial and logistics assets in 2022. PetinovSergeyMihilovich/Shutterstock

Among the real estate assets in Asia Pacific, Colliers’ 2022 Global Investor Outlook Report predicted industrial and logistics to be the most coveted in the region, whilst they named core and core-plus office spaces to be the top investment preference.    

In the last quarter of 2021, investors have put off their transactions as they anticipate the return of cross-border capital flows as travel and business activity resumed. 

Terence Tang, Asia managing director of capital markets and investment services at Colliers, said: “Optimism across the Asia-Pacific region continues to gather momentum and investors have a clear appetite to expand their portfolios. Transaction volumes are recovering back to their pre-Covid highs, and asset operating performances remain in a cyclical upswing.” 

Based on the survey the firm conducted, industrial and logistics are the most sought-after, with over 20 percent of investors expecting to achieve around 10 to 20 percent capital value gains in value-add assets in 2022. 

The report also stated that core-plus offices continue to be regional investors’ favourite asset class in Singapore, Sydney, and Tokyo. Roughly 63 percent of respondents revealed their intent to invest in these assets, as opposed to only 54 percent in 2021. 

More: Asia Pacific office market exhibits strength, demand to rise in 2022: Cushman & Wakefield

Despite businesses testing remote and hybrid working schemes for their operations, the positive sentiment indicates confidence in the capital growth outlook and durability of these markets. 

Multifamily projects across the region have also started to draw the attention of investors, yet the report noted that access to entry is mostly via development in Australia and China. Nearly 50 percent of respondents said that they are searching for development prospects, particularly keeping an eye on these markets. 

As for core and value-add investors, the report found Japan as their target, considering it as the only established market. Yet, some participants also showed interest in smaller fragmented multifamily markets, such as Singapore and Hong Kong. 

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