Connect with us
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});

Property

Logistics stock in Asia Pacific more than US and Europe combined

Five markets (Australia, Japan, Hong Kong, Singapore and China) accounted for over 80 per cent of industrial investment volumes regionally in the 2011-2016 period

Avatar

Published

on

Investors are attracted by strong occupier demand for logistics properties, and higher yields relative to other forms of traditional real estate.

In Asia Pacific, drivers of growth for logistics and warehousing space include demand from third-party logistics operators and e-commerce companies.

Direct real estate transaction volumes in the industrial sector totaled US$13.8 billion in 2016, based on data from Real Capital Analytics (RCA).

Five markets (Australia, Japan, Hong Kong, Singapore and China) accounted for over 80 per cent of industrial investment volumes regionally in the 2011-2016 period. In comparison, India and emerging Southeast Asia accounted for less than three per cent of volumes.

Logistics stock in Asia Pacific more than US and Europe combined

Growing logistics stock presents more options for investors, and enables easier entry into or exit from a market.

Based on our estimates, total amount of stock in the seven largest logistics markets in the region currently totals more than 1.5 billion sqm (gross floor area), more than the United States (795 million sqm) and Europe (260 million sqm) combined.

However, stock size varies vastly across markets as regional economies are at very different stages of development. In addition, prime facilities consists of just a small portion of the regional stock.

The definition of prime stock differs across markets because of factors such as stock availability, occupiers and investors’ requirements. But the main criteria involves newer stock (less than 10 or 20 years old), as well as larger space (cutoff point may differ) that is primarily for lease.

Australia has 29.1 million sqm of logistics space that is generally modern, but a lot of the stock in East Asia comprises of older facilities and the majority is owner-occupied. Currently, less than 5 per cent of the total stock in China and Japan consists of investment-grade facilities for lease.

Logistics stock in Asia Pacific to continue growing

More high-specification modern logistics facilities will come online over the next few years. Large logistics space for lease is growing rapidly in China and Japan.

Meanwhile, logistics real estate in India is also growing, fueled by the growth of the e-commerce sector, economic revival, implementation of the Good and Services Tax and government initiatives.

Large planned investments in road, rails, ports and airways across emerging Southeast Asia will bolster trade and warehousing demand, and consequently make more modern facilities available.

For more information, download our “Growth in logistics sector luring investors in Asia Pacific” report today.

Source link

0/5 (0 Reviews)
Comments

Property

Asia Pacific hotel investment outlook and trends 2019

The Asia Pacific region is expected to be the standout region with hotel investment volumes forecasted to grow by 15% year-on-year in 2019.

Avatar

Published

on

The Asia Pacific region is expected to be the standout region from a growth standpoint, with hotel investment volumes forecasted to grow by 15% year-on-year in 2019.

(more…)
0/5 (0 Reviews)
Continue Reading

Law

New Land and Building Tax collection to start in 2020 in Thailand

Bahar Karaman

Published

on

The Thai Government recently published in its Royal Gazette the new Land and Building Tax Act B.E. 2562 (2019), thus replacing the rather outdated House and Land Tax B.E. 2475 (1932).

(more…)
0/5 (0 Reviews)
Continue Reading

China

Chinese investors spent $2.3 bln in Thai property in 2018

Avatar

Published

on

Credits : ADB

Chinese investors have continued pouring their money into Thailand’s property sector even as the kingdom barrels toward an uncertain national election.

(more…)
0/5 (0 Reviews)
Continue Reading

Most Read

Must Read

Subscribe via Email

Enter your email address to receive notifications of new articles by email.

Join 14,323 other subscribers

Trending