SINGAPORE - The Republic is no longer the region's top destination for real estate investment and development opportunities, according to a report co-published by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI).

In the report, called Emerging Trends in Real Estate Asia Pacific 2013, the Republic fell to third place in the rankings, losing the top place it held for the last two years to Jakarta.

"The main issue in Singapore is a glut of new supply that's arrived just as financial sector firms have been shedding headcount," said Mr Colin Galloway, ULI's Research Consultant and the author of the report.

"That has led to rising vacancies and falling rents, making the market less attractive for new buyers. With the supply pipeline still pretty full over the new few years, there's little relief in the short term."

On the other hand, Jakarta is seen by the 400-over industry experts surveyed for the report as the best bet, especially in the retail and office segments. Its jump to the top from its previous mid-table position has been driven by strong investor interest tied to the country's economic growth.

"It's really boom times in Indonesia now," said one of the surveyed developers. "The demographics look good, it's a country as big as America in terms of headcount and corruption seems to have been at least partly reined in."

A top three position for Singapore still points to positive sentiment towards the property sector for next year, the report noted, as investors continue to see the market as a safe haven with solid returns that are underpinned by the city's position as a global financial hub.

But going forward, Singapore may face further competition in attracting real estate investment as it may lose out to countries offering better yields across the region, such as emerging and frontier markets like Cambodia and Myanmar, the report said.