Figures | Intelligent Investment
Q3 2023 Asia Pacific Cap Rate Survey
November 9, 2023
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CBRE professionals in Asia Pacific observe that investor risk appetite remains low amid a delayed recovery in investment activity. A majority of respondents expect a recovery from Q2 2024 onwards, amid limited expectations of interest rate cuts in the first half of 2024.
Selling pressure persists across most of the region, with the primary exception of India which is receiving increased buying interest from investors. Most investors – excluding private investors and institutional investors/LPs – also have higher intentions to sell than in Q1 2023.
The survey reveals that the price gap is widening for assets with strong fundamentals, such as multifamily, institutional-grade modern logistics facilities, prime shopping malls, cold storage and data centres.
While institutional-grade logistics remains the most popular sector for investors, interest in retail has increased. Slow re-pricing is prompting investors to seek alternative or niche sectors, with real estate debt strategies gaining traction among alternatives.
Cap rates are set to expand across Asia Pacific, reflecting a prolonged high interest rate environment, and as re-pricing lags behind the US and Europe.
Selling pressure persists across most of the region, with the primary exception of India which is receiving increased buying interest from investors. Most investors – excluding private investors and institutional investors/LPs – also have higher intentions to sell than in Q1 2023.
The survey reveals that the price gap is widening for assets with strong fundamentals, such as multifamily, institutional-grade modern logistics facilities, prime shopping malls, cold storage and data centres.
While institutional-grade logistics remains the most popular sector for investors, interest in retail has increased. Slow re-pricing is prompting investors to seek alternative or niche sectors, with real estate debt strategies gaining traction among alternatives.
Cap rates are set to expand across Asia Pacific, reflecting a prolonged high interest rate environment, and as re-pricing lags behind the US and Europe.
Related Insights
CBRE professionals in Asia Pacific observe that investor risk appetite remains low, with high interest rates and slower economic growth key concerns.
Research Contacts
Capital Markets Contacts
Greg Hyland
Head of Capital Markets, Asia Pacific
Callum Young
Executive Director, Capital Markets, Asia Pacific
Valuation & Advisory Services Contacts
Thomas Edwards, FRICS, CPV
Global President, Valuation & Advisory Services
Danny Mohr
Head of Valuation & Advisory Services, Asia and Head of International Valuations, Asia Pacific
