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Continued soft inflation and employment data in the US has changed market leadership as expectations for several Federal Reserve Fed Fund rate cuts has led to a strong rotation from large cap tech into lagging sectors including REITs which are seen as beneficiaries of lower rates. The FTSE EPRA Nareit Asia USD Dev Net TR rose 6.34% in July. Our active markets:
Bottom line: REITs have been trading up since the US CPI print on July 11 on the back of a reset in rates expectations and decent earnings.
Download the Report Read MoreConservation shophouses have emerged as one of the top alternative real estate asset class over the past decade in Singapore. Besides their finite supply and vintage charm, they are among the few asset classes in Singapore that allow foreigners and companies to own boutique buildings at a palatable quantum.
Transaction volumes hit a peak of $1.9 bn in 2021 before declining on high financing costs, record price points and most recently, overhang from the $3 bn money laundering case. CBRE Research believes the underlying fundamentals for shophouses remain solid, notwithstanding certain challenges in the near term.
This report looks at the past, present and future for conservation shophouses, and recommends actionable strategies for investors.
Download the Report Read MoreRecent 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.
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