We like REITs in Singapore for 2019 for example: If a global investor had invested in CapitaLand Commercial Trust (CCT) during its IPO, his initial investment of $1,000 would’ve grown to $1,880 (+88% in capital gains) as at 31 Jan 2019. On top of that, he would have collected total dividends of $1,160 (+116% in dividends). $1,000 investment in Suntec REIT would’ve turned into $1,930. Including dividends, every $1,000 would cumulatively become $3,220. The Singapore REIT that has returned the most so far is Ascendas REIT. Since 2002, every $1,000 investment in AREIT would’ve turned into $3,110. Including dividends, every $1,000 would cumulatively become $5,510 not bad rate of return for Starbucks money invested.

Outisde of Singapore REIT opportunities a robust rate of e commerce consumption of the region is driving increasing investor interest into data centers and logistics in Asia Pacific. These sectors will continue to expand, with significant capital flow targeting emerging markets like China, India and Indonesia. Meanwhile, logistics hubs in major cities are growing. As an example, the logistics market in Sydney increased seven-fold between 2015 and 2017.” In Indonesia Thailand, Vietnam, and the Philippine offshore capital flow is juicing the CRE cycle.

Asia Pacific countries all offer tremendous value creation for global investors as well as risk for portfolio managers.For the portfolio managers the idea here is to find patterns in CRE cycles that create downturns and expose capital to long-term risk. In the Asia Pacific we will look at capital flow in Singapore, Japan, Australia, South Korea , Indonesia and you will conclude your result. Asia Pacific a market with strong growth and a focus on core assets and markets. Japan market face challenges annual transaction volume dropped 26% percent to $28.8B according to RCA. Tokyo experience the slowest activity since 2009. A 10% percent year over year drop in transaction volume, with a total of only 4 cross border transaction closed in Tokyo in 2018 according to PERE. The lowest deal count since 2009.The average office yield was 3.4%-retail 3.4% and industrial was 4.49% percent.There was also a decline in lending the total real estate financing was $710 billion However the hotel markets in both Japan and Australia have strong hotel pipelines emerging. In Australia transaction volume volume was $28.8B tied with Japan. The office market peaked in Sydney and Melbourne at 50% percent higher than 2008 and transaction volume expected to dropped 10-20 percent in 2019 . Singapore’s sovereign wealth fund, GIC, announced that it has set up a A$2 billion ($1.44 billion) unlisted trust with Australian REIT, Dexus, to invest in logistics properties down under.There are many global investment opportunities in Asia Pacific region which are at various stages of the CRE investment cycle.