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Nascent life sciences real estate market in Asia Pacific needs more data sharing to grow: ULI

/ EdgeProp Singapore |

December 8, 2021 10:22 PM SGT

The ULI report notes that the life sciences sector is not as well understood by real estate professionals in the Asia Pacific region.

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SINGAPORE (EDGEPROP) - A report from the Urban Land Institute (ULI) identifies untapped growth opportunities in the life sciences sector in the Asia Pacific region that could provide real estate investors with yield and anti-cyclical diversification.

Read also: Singapore has the best prospects for investment in Asia-Pacific

The ULI report notes that the life sciences sector is not as well understood by real estate professionals in the Asia Pacific region and the sector is not recognised as a distinct investment sector. Compared to the US where a less fragmented and more mature life sciences real estate market have grown.

Reaching that level of market maturity in the Asia Pacific region will require greater transparency and knowledge sharing among investment research companies, developers, and researchers.

The trend towards urbanisation of the life sciences sector seen in some of the North American and European cities is less evident in the Asia Pacific region, where the preference remains with purpose-built parks, precincts and suburban locations, the report says.

ULI says that some steps to help accelerate the development of the real estate life sciences market in the region include overcoming the lack of reliable data. For example, real estate companies should publish rental rates and management information for health care properties, offices, and laboratories.

The think tank also recommends working more closely with governments on strategic vision for the sector, as well as location, workplace, building layout, target tenants, and rental terms. Working closely with major life sciences tenants would also help better understand their needs and develop more appropriate facilities.

ULI has identified Singapore and Hong Kong as the markets with the best functioning innovation ecosystems for investment in life sciences real estate, followed by Mainland China, Japan, South Korea, and then Australia.

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