SINGAPORE (March 25): Singapore is one of three cities in Asia whose office property market is likely to attract a surge in investments this year, according to real estate broker Colliers International.

"The office market Asia-wide is at a stage in the cycle where new supply will rise 152% to about 100 million square feet, presenting significantly more opportunities," Terence Tang, Colliers' managing director of capital markets and investment services for Asia, said in a statement today.

"Shanghai, Hong Kong and Singapore remain the best target destinations," he said.

For Asia as a whole, inbound investment into real estate in general will increase 102% this year, more than three times the rate of growth in 2014, based on Colliers' projection.

Outbound flows from Asia into real estate will increase 61% from a record US$46 billion ($63.5 billion) last year, Colliers predicts, citing policy easing as a driver.

"For instance, China has streamlined the approval process for mainland companies that are investing outside the mainland.

"In Japan, the US$1.1 trillion Government Pension Investment Fund is considering allocating 3% to 5% of funds to global real estate, which would make it the world's largest real-estate allocation."

New York, London, Sydney and Melbourne remain the preferred destinations for outbound Asian investors, although secondary locations in other gateway cities such as Los Angeles and Frankfurt offer the prospect of better returns, according to Colliers.

In Asia, Shanghai is seen as the biggest market for inbound and intra-regional capital flows.

Colliers sees the office market in Pudong as the "best investment play", yielding returns of 4% to 5.5%.

Singapore is "an outlier", where the high-end luxury housing market offers attractive investment opportunities.

"As inventory rises, asking prices have softened and the gap between buyers and sellers is narrowing," said Colliers.