Asia Pacific commercial real estate (CRE) investment volume rose by 44% q-o-q to US$26 billion in Q3 2020, with the October-December quarter also expected to show an increase, according to CBRE’s Asia Pacific Investor Intentions Survey 2021.
While investment was suppressed for much of last year due to measures to contain the COVID-19 pandemic, sentiment and purchasing activity gradually improved in H2 2020, says CBRE.
CBRE’s Asia Pacific Investor Intentions Survey 2021 was conducted between 9 November 2020 and 14 December 2020. 492 mainly Asia Pacific-based investors participated in the survey, which asked respondents a range of questions regarding their buying appetite and preferred strategies, sectors and markets for 2021.
Reflecting the broad-based improvement in market sentiment, this year’s survey found that 60% of investors intend to purchase more real estate in 2021, the highest level since 2016. The recent commencement of vaccination programmes in several countries around the world has further boosted market confidence.
The survey found most investor types are exhibiting a stronger appetite for real estate investment compared with last year. Cross-border activity is set to be a major focus, with more than 70% of respondents intending to purchase overseas assets in 2021.
Together with an increase in asset availability resulting from disposals by developers and real estate funds, this has led CBRE to forecast a 5% to 10% y-o-y rise in Asia Pacific CRE investment volume in 2021.
-Investors have a clear preference for core and opportunistic/distressed opportunities.
-Logistics is the most preferred sector for the first time since surveys began, followed by offices.
-Data centres remain the most desired alternative asset class, while cold storage overtakes debt.
-Tokyo remains the most attractive city for crossborder investors.
-Singapore, Seoul and Ho Chi Minh City are set to attract more interest this year.
-Hong Kong SAR fell out of the top 10 markets for the first time. New entrants include Shenzhen.
-Investors retain an optimistic view towards the future of office leasing demand in Asia Pacific, anticipating only a slight correction.
-ESG is becoming more prominent, with nearly half of investors including such criteria in their investment strategies.
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