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Recent rapid interest rate hikes have tempered economic expansion, yet growth remains resilient throughout the region.
As a result of interest rate hikes, commercial real estate investment in Asia Pacific has declined 40%, though recent data has shown stabilisation and some sectors moving off from their investment low-point.
LOOKING FORWARD
Anticipate upcoming interest rate cuts, although their pace and scale will vary across different markets, which will support accelerating investment transaction activity.
There is significant capital waiting to be deployed. Accordingly, opportunities exist along the risk curve and for different investment styles for astute investors. Secular megatrends will drive growth in Alternative and “through the cycle” asset classes.
While we advise investors to be mindful of government and household debt levels and keep an eye on any significant unwinding of labour markets, history tells us that the time to act is now.
Read the Report Read MoreCBRE’s 2024 Asia Pacific Real Estate Market Outlook Mid-Year Review examines the predictions we made at the beginning of 2024, and reveals our outlook for the rest of the year.
Our original forecasts from January were largely correct, although the prolonging of expected interest rate cuts has delayed a recovery in investment activity. CBRE has therefore slightly revised down its full-year investment volume forecast to an increase of 0% to 3%.
CBRE retains its forecasted full-year gross office leasing volume at 0 to 5% growth on the back of solid upgrade demand and flight to green relocation, while retail expansionary demand remains resilient, as expected. Conversely, logistics demand normalised faster than expected as occupiers retain a preference for renewals over relocations due to high rents and fit-out costs.
This report explores the key trends and forecasts that will shape Asia Pacific’s commercial real estate market for the rest of 2024 and beyond.
Read the Report Read MoreKnight Frank's Asia-Pacific Horizon: Look Beyond the Norm report uncovers emerging investment momentum and identifies top investment destinations, with private capital playing a crucial role.
Key highlights:
This in-depth report offers a comprehensive analysis of the five largest REIT markets in Asia: Japan; Singapore; Hong Kong, China (“Hong Kong”); the Chinese mainland; and India.
Key Highlights:
The beginning of this year saw occupiers in Australia exhibit a more cautious approach due to the sharp rental increases witnessed over the past two years and an increase in new supply. However, demand has picked up in Q2 2024 and the number of transactions is set to increase over the next three to six months.
In Japan, logistics demand is holding firm in regional cities. After putting expansion plans on hold six months ago, many occupiers are now moving ahead with leasing new space. However, rising vacancy is prompting landlords to fill space as soon as possible to tenants from any sector.
Sentiment in Vietnam remains positive, backed by the government’s success in boosting the country’s ties with key trading partners, which continues to lure manufacturers from these countries to set up production bases. Factory space continues to attract strong demand, led by the electronics and automotive sectors along with traditional commodities.
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