Asia Pacific Investment Trends Q2 2017
- Investors from the U.S., Europe and the Middle East were quieter but Asian capital turned more active, led by Hong Kong and Singaporean groups.
- Chinese outbound investment in Asia Pacific fell by 59% y-o-y following the imposition of controls on capital outflows. A slowdown was also witnessed in other major markets. Activity by institutional investors weakened, while conglomerates and property companies focused on smaller deals.
- Investment activity is expected to weaken as more markets tighten lending for commercial real estate investment. Investors may turn less aggressive due to higher financing costs but prime core assets will remain keenly sought after.
- The lack of investible stock will also inhibit transaction activity. Most landlords are under little pressure to sell given the persistent low interest rate environment.
- CBRE Research forecasts that full year transaction volume will remain flat compared to 2016.