Figures | Intelligent Investment
Q1 2024 Asia Pacific Cap Rate Survey
May 2, 2024 5 Minute Read
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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.
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 – office, retail, hotels, multifamily, data centres and institutional-grade modern logistics – 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.
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.
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.
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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 exp...
Research Contacts
Capital Markets Contacts
Greg Hyland
Head of Capital Markets, Asia Pacific, CBRE
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
