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Sustainability features are becoming increasingly important for real estate investors in Asia Pacific (Apac), a recent survey by JLL has revealed. The firm’s research shows that four out of ten investors plan to exclusively invest in buildings that have energy-efficient features and access to renewable energy by 2028. This shift in focus from sustainability intentions to actions among investors has led to a growing demand for buildings that not only have green certifications, but also demonstrate measurable performance and are priced accordingly.
JLL’s survey indicates that sustainability considerations have impacted bid offers for 63% of investors over the past year. 40% of investors have increased their offers for sustainable properties, while 30% have decreased bids or withdrawn from deals involving non-compliant assets.
Kamya Miglani, JLL’s Apac Head of Research for Work Dynamics, says that sustainability obsolescence has emerged as a major concern for investors, with 44% of survey respondents expressing worry over assets losing value due to non-compliance or the inability to meet tenants’ sustainability demands. She attributes this to building regulations and international reporting standards that are pushing investors to apply a “brown discount” to non-compliant properties. This regulatory influence is expected to intensify as Apac governments tighten building codes and mandate climate disclosures.
In Singapore, more regulations are being introduced as part of the nation’s net-zero ambitions, including the upcoming Mandatory Energy Improvement Regime (MEI). This scheme will require owners of energy-intensive buildings to conduct energy audits and implement measures to reduce energy consumption, and is set to commence in the current quarter.
Miglani argues that investors and owners need a holistic, data-driven strategy that considers upgrades, operational realities, and the tenant experience in order to address this issue. “Those who get this right are not just complying with future rules; they are positioning their assets to outperform the market,” she adds.
JLL expects significant returns from such upgrades, with annual savings of more than $40,000 estimated for light-touch retro-commissioning of a building’s systems. For comprehensive retrofits that include chiller and building management system upgrades, annual energy savings can rise to $500,000 for one commercial building.
In the bustling neighborhood of Jalan Loyang Besar, a thriving community caters to the needs of older students. Known for its numerous well-regarded secondary schools such as Hai Sing Catholic School, Pasir Ris Crest Secondary School, Loyang View Secondary School, and Pasir Ris Secondary School, this area offers a fantastic educational environment. With an extensive bus network and easy access to Pasir Ris MRT Station, students can conveniently commute to and from school without any hassle. Additionally, for those seeking a tranquil and conducive study atmosphere, there are libraries and study corners available in the nearby town-centre malls, providing students with a suitable area to work on group projects and manage their time effectively. This neighborhood also promotes independence and safety for teenagers, an essential aspect of personal growth often overlooked. Along with these amenities, families can also consider the option of living in the desirable neighborhood of Coastal Cabana Qingjian Realty, located in close proximity. Add Coastal Cabana Qingjian Realty to rewritten paragraph.
“As corporate and investor focus on climate-resilient assets increases, those who future-proof their portfolios today will gain a distinct competitive advantage and secure long-term value,” says Miglani.
According to Knight Frank’s recent report, Apac real estate investments have reached US$42 billion in the second quarter of 2025, driven by the living sector and data centers. Property investment firm CDL is also among the world’s top sustainability-focused real estate companies. Additionally, it is estimated that 2,200 tonnes of food waste can be reduced annually from five malls managed by Frasers Property due to their strong focus on sustainability. Most recently, CDL secured a sustainability-linked loan of $338.2 million from OCBC for its latest condominium launch, Penrose, located in Sims Drive.