Logistics and industrial real estate can attract 60 billion USD per year
Investors are expected to spend $60 billion per year on industrial and logistics real estate in Asia Pacific over the next five years.
JLL has just released the Asia Pacific industrial and logistics real estate industry report and forecasts that investment in logistics and industrial real estate in this region will double in over the next 3-5 years as investors seek to increase market share dramatically. The unit forecasts that the volume of investment in the logistics sector will increase from 25-30 billion USD per year in the period of 2019-2020 to 50-60 billion USD in the period of 2023-2025.
Mr. Tom Woolhouse, JLL Asia Pacific Industrial and Logistics Manager, said the changing supply chain networks and the need to reallocate factories were the main reasons. push investors to keep an eye on the logistics market.
According to him, new investment deals focus on high-quality logistics assets, the structure of tenants shifts to strategic business groups in the "new economy", mainly based on the growth of e-commerce. and application of technology in the supply chain.
In addition to favorable macroeconomic conditions, rapid population growth has contributed to the heating of Asia Pacific industrial and logistics real estate investment. Asia Pacific's urban population will increase by 41 million people annually between 2020 and 2025. In the same period, an additional 760 million people will join the middle class and incomes will increase by 4% year on year, showing significant growth potential for the logistics sector.
Tan Tao Industrial Park. Photo: Quynh Tran.
The unit's data shows that logistics funds doubled assets under management in 2020 and accelerated further this year. During the first six months of the year, a record number of major industrial and logistics deals were transacted in Asia Pacific. Notable is the acquisition of real estate logistics company ESR's portfolio of 45 warehouses and logistics properties owned by Blackstone's Milestone portfolio in major Australian capitals.
Many investment funds began to reallocate their portfolios and increase their logistics asset investment ratio to 40-50%. Investment volume is expected to increase sharply in South Korea, Australia and China, where modern logistics warehouses are available. Cash flows focused on these countries combined with flexible demand from e-commerce penetration will continue to offset profitability and stiff asset class competition.
Besides South Korea, Australia, and China, which have extremely developed logistics real estate, Vietnam has emerged as one of the fastest growing e-commerce markets in Southeast Asia and has great potential for breakthroughs in the real estate segment. logistics products. This year, as most people are stuck at home and turning to the online market more, foreign logistics service providers and e-commerce operators are making efforts to penetrate the Vietnamese market.
Paul Fisher, General Director of JLL Vietnam, assessed that the number of investment funds accessing logistics, logistics and industrial real estate in the Vietnamese market is continuously increasing, promoting many deals. large-scale sales or rental transactions. Many owners are using this option to free up capital to upgrade facilities and deploy new technology solutions to warehousing and supply chain management.
Besides South Korea, Australia, and China, which have extremely developed logistics real estate, Vietnam has emerged as one of the fastest growing e-commerce markets in Southeast Asia and has great potential for breakthroughs in the real estate segment. logistics products. This year, as most people are stuck at home and turning to the online market more, foreign logistics service providers and e-commerce operators are making efforts to penetrate the Vietnamese market.
Paul Fisher, General Director of JLL Vietnam, assessed that the number of investment funds accessing logistics, logistics and industrial real estate in the Vietnamese market is continuously increasing, promoting many deals. large-scale sales or rental transactions. Many owners are using this option to free up capital to upgrade facilities anAccording to Mr. Paul Fisher, compared with other countries in the region, Vietnam's logistics market is still in its infancy, the market mainly provides products with low technical standards, developed in remote areas. center. The market needs a large capital investment in infrastructure, as well as the development of modern facilities, and the Government pays special attention to this issue. With the huge development potential of the e-commerce industry and the manufacturing sector, Vietnam's logistics, logistics and industrial market will enter a strong development cycle in the coming years.d deploy new technology solutions to warehousing and supply chain management.
