---APAC-Investor-Intentions-Survey.png%3Fitok%3Dqf--HS4v&w=3840&q=100)
Asia Pacific investors signal renewed confidence in commercial real estate in 2025
Published: 12:00am, 19 Feb 2025
[The content of this article has been produced by our advertising partner.]
Heading into 2025, investor confidence in Asia Pacific commercial real estate has improved noticeably, but optimism remains tempered by global economic uncertainties and the US Federal Reserve's more cautious stance on interest rate cuts. According to CBRE's 2025 Asia Pacific Investor Intentions Survey , net buying intentions have improved from 5 per cent in 2024 to 13 per cent this year, driven by falling debt costs, asset repricing and a growing appetite for core-plus and value-add strategies.
Greg Hyland, Head of Capital Markets, Asia Pacific at CBRE, attributes the shift in sentiment to stabilising financial conditions.
'We are seeing the capping of interest rates in a lot of Asia Pacific markets that we operate in. In some markets, rates have started to decrease, so I think that has given investors a degree of confidence that we are at the top of the rate cycle,' he said.
Ada Choi, Head of Research, Asia Pacific at CBRE, echoed this sentiment, emphasising that investors are displaying stronger buying intentions this year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RTHK
5 days ago
- RTHK
Hang Seng Index ends with across the board declines
Hang Seng Index ends with across the board declines The Hang Seng Index ended the day down 131.80 points, or 0.57 percent, at 23,157.97. Photo: RTHK Asian markets sank on Monday as investors brushed off data showing the US Federal Reserve's favoured inflation gauge cooled more than expected last month. In Hong Kong, the Hang Seng Index ended the day down 131.80 points, or 0.57 percent, at 23,157.97. The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, declined 0.9 percent to the lowest since May 6, The declines were across the board, with the Hang Seng Tech Index losing 0.7 percent, property subindex declining 1.4 percent and healthcare sector sliding nearly 2 percent. Among the biggest laggards, local property firm New World Development plunged 6.9 percent to near a two-month low after it deferred coupon payments. Carmakers continued the slide amid ongoing price war concerns. Shares of Li Auto and Nio both lost more than 2 percent, while BYD weakened 1.9 percent. New World Development is in the middle of a loan refinancing drive as it looks to raise more than US$11 billion from banks. Japan's Nikkei share average ended lower amid worries over Sino-US trade tensions and a stronger yen, which hurt automakers. The Nikkei fell 1.3 percent to 37,470.67 and the broader Topix slipped 0.87 percent to 2777.29. "Investors were worried about rising uncertainties about trade issues," said Shoichi Arisawa, general manager of investment research at IwaiCosmo Securities. "Optimism over the tariff policy, which pushed the Nikkei over the psychologically important level of 38,000 last week, has vanished." Sydney, Singapore, Taipei, Mumbai and Jakarta also fell along with London, Paris and Frankfurt. Seoul and Manila were marginally higher, while Shanghai and Shenzhen were closed for a holiday. (AFP/Reuters)
South China Morning Post
5 days ago
- South China Morning Post
Japan and Singapore show even property safe havens are not problem-free
Two findings stood out in CBRE's survey on Asia's commercial property investment market published last month. The first was that Japan alone accounted for 36 per cent of transaction volumes in the first quarter of this year. The second was that it was easily the most popular market among cross-border investors, with 86 per cent of respondents describing their level of interest in Japan as very strong or fairly strong. These findings underscore the strong appeal of a market that has long been perceived by foreign investors as a safe haven. At a time when the United States – long the safe haven of choice for global investors – has become a source of instability and unpredictability , Japan's political stability, policy predictability and the depth and liquidity of its real estate market have taken on added significance. Persistently low interest rates, the cheap yen , the return of inflation after decades of stagnation and Japan's position as an attractive alternative to China have added to its appeal among investors. Even so, there are signs that Japan has become too appealing. In the commercial property market , the weight of foreign and domestic capital targeting Japanese assets in the past several years has driven down rental yields for institutional grade properties in Tokyo to extremely low levels. Even in Osaka, a relatively illiquid market, prime office and retail yields are lower than in Seoul and Singapore, which are among the most actively traded markets in the Asia-Pacific. Low borrowing costs and higher loan-to-value ratios in Japan allow investors to earn a positive carry, which means the returns from holding an asset exceed its financing costs. However, a narrowing spread, or gap, between rental yields and government bond yields makes Japanese real estate less attractive from a pricing standpoint. Moreover, the cheap yen – down about 38 per cent against the US dollar since early 2021 – has fuelled a boom in overseas tourism . Last year, hotels accounted for 20 per cent of investment activity, up from 5 per cent in 2021, according to JLL data.
South China Morning Post
28-05-2025
- South China Morning Post
Hong Kong's April lived-in home prices eke out 0.35% gain as stamp duty cut spurred deals
Hong Kong's lived-in home prices rose for the first time in five months in April, as transactions were spurred by a cut in the government's stamp duty for homes worth up to HK$4 million (US$510,000). Advertisement An index measuring home prices eked out a 0.35 per cent gain to 285.7 last month, from 284.7 in March, according to the Rating and Valuation Department on Wednesday. Transactions in the residential market jumped last month. Previously, buyers of homes worth up to HK$3 million were subject to a relaxed HK$100 stamp duty. This was extended to homes worth up to HK$4 million following the budget announcement in February. Homes worth up to HK$4 million accounted for a quarter of residential sales in 2024, according to CBRE. The cut in the stamp duty was likely to increase the share of this segment to 30 per cent of residential transactions, the property consultancy said. More to follow ... Advertisement
