Q1 2025 Asia Pacific Cap Rate Survey

CBRE professionals in Asia Pacific note that overall investment sentiment and risk appetite remains steady overall, despite concerns over trade policy and uncertain economic growth. However, most investors are assessing their investment plans or slowing down activity amid tariff impacts.

Respondents say that buying intentions have improved for REITs and real estate funds, and are the strongest in the Pacific region, while Japan continues to attract interest from cross-border investors. Asset repricing and rental growth are the top factors to enhance investment returns.

Tariffs and recession risks are top concerns, with investors in Greater China and Singapore most concerned about the impact of tariffs.

In terms of investment demand by sector, rental housing is surging in popularity, while interest in neighbourhood malls continues to grow.

A bifurcation of cap rates is expected across Asia Pacific markets, with cap rates in Greater China remaining on an upward trend, while compression is being observed for malls in Australia.