Recovery in Asia Pacific commercial real estate investment now expected in mid-2024

Most investors have adjusted their expectations for the recovery of commercial real estate investment activity in Asia Pacific to mid-2024 amid a prolonged high-interest-rate environment and ongoing capital markets headwinds, according to a CBRE survey.

The survey reveals only 12 percent of respondents have observed an improvement in investment activity in 2023. This contrasts with CBRE’s previous survey in April, where 73 percent of investors expected a recovery this year. The weak risk appetite among investors, coupled with limited expectations of interest rate cuts in the first half of 2024, has resulted in continued selling pressure across most of Asia Pacific, with the exception of India and mainland China, which show stronger buying intentions.

Next year’s volume recovery is projected to initially be led by Singapore in second quarter 2024, followed by New Zealand and mainland China in third quarter 2024, and Korea in fourth quarter 2024. Australia and Hong K