Figures | Intelligent Investment
Q1 2023 Asia Pacific Cap Rate Survey
May 18, 2023
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CBRE professionals in Asia Pacific observe that investor risk appetite remains low, with high interest rates and slower economic growth key concerns.
Although interest rates are stabilising in the region, they are likely to remain high, which will likely have a lasting impact on cap rates.
More investors are looking for discounts on logistics properties, while the pricing gap is narrowing for other sectors.
Logistics property remains the most preferred asset class for investors, although interest has weakened. Meanwhile, there is an increasing appetite for prime retail and alternatives.
A majority of CBRE professionals expect investment activity to resume in H2 2023. Purchasing is set to pick up due to greater clarity around future interest rate movements and the realisation of cap rate adjustments that will help close the price expectation gap.
Although interest rates are stabilising in the region, they are likely to remain high, which will likely have a lasting impact on cap rates.
More investors are looking for discounts on logistics properties, while the pricing gap is narrowing for other sectors.
Logistics property remains the most preferred asset class for investors, although interest has weakened. Meanwhile, there is an increasing appetite for prime retail and alternatives.
A majority of CBRE professionals expect investment activity to resume in H2 2023. Purchasing is set to pick up due to greater clarity around future interest rate movements and the realisation of cap rate adjustments that will help close the price expectation gap.
Research Contacts
Ada Choi, CFA
Head of Occupier Research & Head of Data Intelligence and Management, Research, Asia Pacific
