Singapore, Southeast Asia draw in investors, global occupiers

The Lion City enjoys strong office leasing activity.

As Southeast Asia gains increasing attention as an attractive real estate investment destination and office hub, Singapore continues to be a popular choice thanks to its safe-haven status, said Cushman & Wakefield. 

Cushman & Wakefield’s head of global occupier services for Asia Pacific, Cameron Ahrens, told the CoreNet Global Summit in Kuala Lumpur recently that among Southeast Asia’s main appeals include its strong economic growth prospects, favorable demographics and a relatively “low-cost base position in the region for increased real estate activity.”

Each market, however, has its own value proposition.

“Singapore’s business-friendly environment and deep talent pool continues to attract multinational companies as a location from which to base their regional or even global headquarters,” said Ahrens. 

He said the city-state, being “the gateway to Asia,” currently enjoys strong leasing activity in its office market. Other markets in the region, meanwhile, can expect higher activity driven by both multinational and local occupiers. 

Manila’s office segment is also booming thanks to its established business process outsourcing and shared services sectors, as well as a skilled, English-speaking talent pool, according to Ahrens.

He added that new work trends and cost-cutting of companies amid a high-interest rate environment bode well for low-cost and emerging markets in Southeast Asia.

In manufacturing, Ahrens noted that Southeast Asian nations stand to benefit from the rising intraregional trade and the China Plus One strategy where firms are diversifying their supply chains to reduce reliance on China.

“At the end of the day, location decisions are based on a company’s unique blend of priorities. But whether it is cost, proximity to manufacturing plants or research and development hubs, or access to talent, Southeast Asia ticks a lot of boxes,” he concluded.