ULI Shanghai held a conference and roundtable discussion on February 9, 2023, at THE INET, to share insights and latest information on emerging trends in the real estate industry in the Asia-Pacific region. The 3-hour event attracted 40 ULI members, who had the opportunity to listen to key findings from the ULI Emerging Trends in Real Estate® Asia Pacific 2023 report and local market conditions. The event also had two rounds of roundtable discussions, with each discussion table being led by an experienced industry member.

The first roundtable discussion focused on ESG, stating that all enterprises must face ESG issues and develop a strategy. Although the ESG return period may be longer, policies and technology are continually being standardized, and enterprises must adopt the ESG route. By lowering risk and creating opportunities, ESG goals can be achieved.

In the commercial real estate roundtable discussion, attendees shared some data indicating that the market situation was relatively optimistic in the short term, although there was still unstable pressure in the long term. They suggested understanding tenants and creating value through products, operational strategies, services, and brand management by using professional design and software to enhance operational capabilities.

In the financing roundtable discussion, attendees discussed debt and equity financing. Participants are seeking more domestic bank financing for project financing. However, the new regulations on foreign debt under the 56th order issued by the National Development and Reform Commission may increase the difficulty and uncertainty of approval, and the impact on the real estate industry is still unclear. As for equity financing, investors may be cautious about investing in China’s market with US-dollar funds due to the economic cycle and geopolitical influences, and Renminbi funds may become a short-term trend. In addition, they hoped that REITs could make faster progress in supervisory approval for commercial mall projects.

During the residential roundtable discussion, three investment suggestions were presented. Firstly, investors should select the right sectors, developers, and projects with appreciation potential as this is a good investment year. Secondly, the appreciation potential of integrated residential projects is expected to be higher than that of single residential projects. Finally, investors should be cautious about investing in old villas and foreign houses since the market has reached saturation, and there will be more housing supply in the future.

During the residential roundtable discussion, three investment suggestions were presented. Firstly, investors should select the right sectors, developers, and projects with appreciation potential as this is a good investment year. Secondly, the appreciation potential of integrated residential projects is expected to be higher than that of single residential projects. Finally, investors should be cautious about investing in old villas and foreign houses since the market has reached saturation, and there will be more housing supply in the future

The logistics roundtable discussion focused on the development of the logistics industry, the changing players, and the growing investment from Renminbi funds in the logistics industry. Participants also discussed the driving forces of consumer and manufacturing industries’ demand for logistics and the continued interest of investors in the logistics industry.

Thus, this event has been successfully held and participants discussed deeply on the relevant topics, sharing their ideas and experiences. Hopefully, we will have more opportunities to gather in the future and explore more hot topics together.