2024 Asia Pacific Investor Intentions Survey (CBRE)

CBRE’s 2024 Asia Pacific Investor Intentions Survey was conducted in November and December 2023. Over 500 responses were received from participants who were asked a range of questions related to their buying intentions, perceived challenges and preferred strategies, sectors and markets for the coming year. 

The survey uncovered persistently weak buying intentions across Asia Pacific, with selling intentions hitting the highest mark since surveys began. Whilst the rate hike cycle has come to a halt in major global markets, investors are waiting for indications that the current repricing cycle has finished before deploying significant amounts of capital.

Investors in most markets (ex. Japan) will therefore continue to adopt a wait and see approach in H1 2024. However, amid growing expectations that the U.S. Federal Reserve will begin cutting rates in H2 2024, and Asia Pacific’s central banks following suit, commercial real estate investment activity should accelerate in the back half of the year.

Other key findings:

• Overall investment sentiment is at the expected level of CBRE’s in-house estimates. Despite similar net buying intentions, more than 40% of investors said they would dispose of more assets in 2024 to realise returns and repay debt. The strongest selling intentions were observed in Australia, Singapore and Hong Kong SAR.

• The survey revealed that value-added investment strategies will gain momentum in 2024 as investors look to hit target returns in markets where negative carry continues to persist.

• Residential assets (especially multifamily and built-to-rent) logged the strongest uptick in interest, particularly among investors considering value-add strategies. Industrial and offices are still the top property type among core investors.

• Healthcare assets remain top of mind for investors looking at alternative assets. Real estate debt climbed to second place in this year’s survey, while a greater emphasis on the living sector (retirement living and student accommodation) was observed.

• Japan retained its position as the most preferred market for cross-border investment for a fifth consecutive year. Singapore and Australia followed in second and third place, respectively. Investors remain attracted to highly liquid markets with stable income.

• Just over 60% of investors, the bulk of which are private equity funds, real estate funds and REITs, intend to retrofit existing buildings to be more sustainable or ESG-compliant in 2024; a trend ensuring value-added strategies are their preferred approach.

This report was originally published in https://www.cbre.com/insights/reports/asia-pacific-investor-intentions-survey-2024

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