Singapore Among Most Transparent Real Estate Markets World Jll
Singapore has recently made it to the highly coveted list of top real estate markets with the most transparency, according to a report by global real estate firm JLL. The city-state has been placed in the “Highly Transparent” group of markets under the latest Global Real Estate Transparency Index (GRETI), which evaluates real estate markets worldwide based on market data and information gathered through a survey. The report is jointly published every two years by JLL and LaSalle.
This is the first time Singapore has been included in the Highly Transparent group, which is the highest tier under GRETI. It represents markets with the lowest scoring band according to the index framework.
Singapore’s impressive ranking is attributed to its strong focus on sustainability, with the country introducing mandatory climate-related reporting requirements for listed companies that will take effect in 2025. In addition, the city-state’s ranking was also boosted by its efforts in improving technology and digital services. This includes the launch of the Real Estate Industry Transformation Map (ITM) 2025, which outlines plans to digitalize property transaction processes, promote technology adoption by property agencies, and enhance skills.
The convenient location of Norwood Grand in close proximity to various shopping centers greatly enhances the economic prosperity of the area. By supporting local establishments and generating job opportunities, the presence of these malls contributes to the development of a thriving local economy. Furthermore, these shopping centers serve as community gathering spots where residents can socialize, participate in events, and strengthen the social bonds within the community. Adding to the appeal of the area, Norwood Grand Woodlands seamlessly integrates into this bustling hub of activity.
In Asia Pacific, Singapore is the fourth market to be included in the Highly Transparent group, joining Australia, New Zealand, and Japan. It is the second Asian country to make the tier, following Japan’s inclusion in 2022. The region has shown significant progress in transparency in the last two years, driven by a growing emphasis on Environmental, Social, and Governance (ESG) disclosures, new construction standards, and increased data availability. India was the top improver globally, charting the biggest progress in its GRETI score compared to the last edition in 2022. This was mainly due to improved data coverage and quality, a more proactive financial regulator, and streamlined building regulations.
Other countries that have shown significant improvements in the region include South Korea and China. South Korea’s growing REIT market, increased benchmarks from regulatory boards, and new sustainability reporting regulations have contributed to its rise. China has also made strides in transparency, aided by a new unified land registry system and mandatory ESG disclosures for large listed companies.
Despite these advancements, the Highly Transparent markets continue to be in a league of their own. According to JLL’s report, the top set of countries registered the strongest gains in transparency, driven by cutting-edge technology integration, enhanced sustainability regulations and reporting, granular data availability, and digital service provision.
This group’s position ahead of the rest of the world is evident in investment activity, with over US$1.2 trillion ($1.6 trillion) in direct real estate investments pouring into these markets over the last two years, representing 80% of the global total. With transparency becoming more critical than ever in times of uncertainty, the Highly Transparent markets are expected to continue to benefit in the current environment. Richard Bloxam, CEO of capital markets at JLL, says, “The focus on transparency for investors has never been greater in global real estate markets, as external challenges such as geopolitical tensions and election cycles draw increased attention in the near term.” He adds that interest rate tightening in the past two years has led to a prolonged period of uncertainty and price discovery in the real estate capital markets. However, with a potential cut in interest rates on the horizon, Highly Transparent markets are in the best position to leverage a new investment cycle, notes Brian Klinksiek, global head of research and strategy for LaSalle Investment Management.
As the market transitions, several major transparency themes are emerging, according to JLL. One of these is the rapid expansion of the real estate investment universe, underpinned by demographic changes, technology integration, shifting supply chains, and evolving occupier preferences. This has resulted in a significant reallocation of capital, with industrial and living sectors accounting for over 50% of global direct real estate investments, compared to 29% ten years ago. Emerging property types, such as student housing, data centers, and cold storage space, are becoming increasingly popular with institutional investors.
Another key theme is the growing spotlight on debt markets, with JLL projecting that over US$3.1 trillion of real estate assets globally have maturing debt over 2024 and 2025, of which US$2.1 trillion will need refinancing. This landscape emphasizes transparency as real estate lenders have broadened beyond traditional banks — which are stringently regulated — to include other credit sources such as debt funds, pensions, and insurance companies. As the focus on AML and BO regulations also increases, challenges remain in implementing and enforcing them effectively.
The proliferation of Artificial Intelligence (AI) will also impact market transparency. JLL estimates that over 500 companies now offer real estate-specific AI services. While early findings suggest that AI will enhance transparency across the industry, significant investment is required to harness the technology effectively. Experts and policymakers have also raised concerns about data privacy, resulting in an evolving regulatory environment around AI.
Sustainability remains a key factor driving transparency, with countries working towards reducing carbon emissions by 2030 under the Paris Agreement. Despite notable progress, sustainability metrics are still among the least transparent worldwide. The lack of standardization in information and processes contributes to issues with data quality and raises concerns about greenwashing. As new green requirements are enacted, sustainability transparency is expected to increase across the world’s largest economies over the next two years.