Asia Pacific Commercial real estate market faces challenges, but resilient sectors offer investment opportunities
CBRE foresees a continued challenging environment for the Asia Pacific commercial real estate investment market due to the prolonged interest rate hike cycle, insufficient price corrections and a slower than expected recovery of mainland China, according to CBRE’s 2023 Asia Pacific Real Estate Market Outlook Mid-Year Review.
CBRE has revised its full-year forecast for Asia Pacific’s commercial real estate investment volume to a decline of 15 percent, before starting to recover in the first half of 2024.
Despite this challenging backdrop, investors can still capture cyclical investment opportunities as yields will continue to expand in the second half of 2023, with Australia expected to see the most significant yield expansion and Japan continues to outperform. There are also signs of green shoots in Korea underpinned by declining of cos