Asia Pacific Investment Trends Q1 2024 (CBRE)

While activity remains limited in Australia amid delayed rate cuts, some buyers are returning to the retail sector now that pricing has been reset. The hospitality and living sectors are also attracting interest. H2 2024 will be the optimal buying window as some sellers expect the rate cute cycle to arrive by year’s end.

In Hong Kong SAR, the relaxation of LTV ratios for commercial real estate investment has improved sellers’ confidence and liquidity, leading to fewer discounted and distressed opportunities. More investors are looking at niche sectors such as student housing and data centres as the office market remains under repricing pressure.

Investment volume in Japan was supported by J-REITs and domestic property firms in Q1 2024. However, activity by foreign buyers weakened amid high interest rates globally. Interest in prime offices and hotels remains strong but investors are becoming more selective towards the residential sector.

Korea continues to see improved market sentiment on the back of easing lending rates. Positive carry is expected to occur by the end of 2024 as yields continue to expand and the cost of finance trends down.

This report was originally published in https://www.cbre.com/insights/figures/asia-pacific-investment-trends-q1-2024