亚洲REIT市场洞察系列第9期

EDITOR'S NOTE2Cushman & Wakefield Dear Reader,We are excited to present the 9th annualedition of Cushman & Wakefield’s AsiaREIT Market Insight series. Thiscomprehensive report, based on dataprimarily provided by our China Valuation& Advisory team, provides in-depthanalyses and comparisons of the fivelargest REIT markets in Asia: Japan,Singapore, the Chinese mainland,HongKong, China (“Hong Kong”); and India.The new report offers a broad explorationof the trends shaping real estateinvestment trust (REIT) markets across theregion. Reflecting on a year of dynamictransition amid shifting global financialconditions, it provides valuable insightsinto how mature markets such as Japan,Singapore, and Hong Kong are navigatingstabilization challenges, while growthmarkets such as the Chinese mainland andIndia forge ahead with notablemomentum. By examining keyperformance metrics, regulatoryframeworks, and evolving marketlandscapes, the report is designed toequip stakeholders with actionableknowledge tailored to this evolving sector.One of the central themes of this report isthe growth trajectory of emerging marketswithin Asia, with the Chinese mainlandstanding out as a beacon of opportunity.The past year has seen the Chinesemainland REIT market achieve significantmilestones, including an 85% year-on-yearincrease in market value by the end of2024. This growth is underpinned bystrong investor demand for infrastructure-backed REITs and robust issuance of newproducts, particularly in consumerinfrastructure and industrial sectors. TheChinese mainland market’s performanceunderscores its role as a critical driver ofregional expansion and a key area towatch in the coming years. India’s REIT market also features as amajor highlight, demonstrating robustgrowth across both office and retailsectors. With record leasing volumesdriven by demand from multinationaloccupiers and Global Capability Centers(GCCs), Indian REITs have shownexceptional resilience and adaptability.The success of office REITs, paired withemerging opportunities in small andmedium REITs (SM-REITs), highlightsIndia's potential as a fast-developinginvestment destination. The coming yearpromises further milestones, includingthe debut of Knowledge Realty Trust(KRT), poised to become one of thelargest REITs in the country.Looking ahead, the Asia REIT market ispoised to evolve against a backdrop ofglobal economic shifts and localizeddevelopments. Mature markets such asJapan, Singapore and Hong Kong areexpected to stabilize, while emergingmarkets will likely continue to leadgrowth on the back of robust domesticfundamentals and supportive policymeasures. In addition, sectors such asdata centres and hospitality are likely toremain in focus, presenting opportunitiesfor investors seeking to diversify theirportfolios. Together, these trendsposition the Asia REIT market as adynamic and increasingly prominentsegment within the global real estateinvestment landscape.We trust this report will prove a valuableresource for your investment decisions inAsia’s real estate sectors.Sincerely,Catherine Chen,Director, Investor Client Intelligence &InsightsAsia Pacific, Cushman & Wakefield Cushman & Wakefield data reveals a total of 263 active Real Estate InvestmentTrust (REIT) products in the Asia market as at Dec. 31, 2024, with a combinedmarket value of US$235.8 billion, reflecting a year-on-year decline of 6.5%. The year2024 was characterized by structural trends in the Asia REIT landscape. Firstly, theChinese mainland REIT market achieved robust growth, surpassing Hong Kong inmarket value to secure a top-three position among Asia REIT markets. Meanwhile,mature markets such as Japan, Singapore, and Hong Kong witnessed market valuecontractions, influenced by shifts in the global financial environment. And finally,emerging markets such as Thailand, the Philippines, Malaysia, and India gainedmomentum, supported by strong domestic economic fundamentals.Major Asian REIT markets also experienced widespread declines in stock pricesthrough 2024, despite three interest rate reductions by the U.S. Federal Reserve inthe second half of the year. Contributing factors included politically drivenuncertainty, the pace of monetary policy adjustments, and the varying impacts ofnational interest rate policies. Among mature markets, Singapore stood out withheightened activity in equity financing and mergers and acquisitions (M&A).Singapore data centre REITs stand out as an example, with thriving activitybolstered by advancements in artificial intelligence (AI). Local office and hotelassets also continued to demonstrate resiliency in operational performance. In theJapan market, REITs recorded higher dividend yields, with hotel REITsoutperforming due to surging demand from inbound tourism.Looking ahead, the Asia REIT market is poised for continued evolution as itnavigates the dual forces of mature market stabilization and emerging marketexpansion. The mature markets of Japan, Singapore, and Hong Kong will