Weekly Market Update - 2 October 2023

Japanese Real Estate

Singapore became the biggest investor in Japan’s real estate sector this year, lured by the yen’s weakness and growing demand in logistics and hospitality industries, according to Knight Frank. Inflows from the city-state total almost $3 billion so far in 2023, followed by investors from the US, Canada, and the United Arab Emirates, according to a report published this month. International investors are also attracted to its low borrowing costs, and are putting more money into hotels because of a post-pandemic tourism boom.

Source: Bloomberg

Oil Market

Oil rose to a one-year high as crude stockpiles in the largest US storage hub declined to the lowest since July 2022. US benchmark West Texas Intermediate crude topped $93 a barrel after inventories at Cushing, Oklahoma, dropped just below 22 million barrels, close to operational minimums. The premium for near-term barrels of WTI traded at about $2, the highest level since July 2022, a sign that the futures market is reflecting physical tightness.

Source: Bloomberg

Chinese Investors

A record share of Chinese investors plan to cut their allocation to property over the next year, a new survey showed. That highlights the difficulties Beijing is having breathing life back into the sector. The net share of respondents planning to cut investment in domestic real estate over the next year rose to a record 31.7% in the third quarter of this year, according to a quarterly investor sentiment survey published by the Cheung Kong Graduate School of Business in Beijing.

Source: Bloomberg