Q1 2024 Asia Pacific Cap Rate Survey (CBRE)

CBRE professionals in Asia Pacific note that the timing for a recovery in investment activity has been pushed back amid limited risk appetite and delays to interest rate cuts. Nearly 70% of respondents expect a recovery from Q4 2024 onwards.

Cap rate expansion is expected across most markets in Asia Pacific, with cap rates in Australia to expand further, while Japan will remain stable. More pronounced expansions are expected in secondary assets over the next six months.

Other key highlights from the survey include:

• Investors remain net sellers – particularly real estate funds, property companies and banks – but pressure is easing. Meanwhile, private investors continue to have strong net buying intentions.
• The price gap between buyers and sellers is also narrowing across sectors, indicating stronger support for deal closure.
• The survey reveals that in terms of investor preferences, flight-to-quality demand remains, while hotel and multifamily assets are gaining traction on cyclical and structural tailwinds.

CBRE believes that with interest rates having peaked in most Asia Pacific economies, investors should aim to complete acquisitions before rate cuts commence, with the optimal buying window expected to open in the second half of 2024.

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

Download the Report