Around 60 percent of investors have become more risk averse amid the rising interest rate environment in Asia Pacific, according to CBRE in its Asia Pacific Cap Rate Survey Q3 2022.
Logistics properties remain keenly sought after, followed by prime core offices. Hotels have moved up to third.
Other key findings from the report include:
Investors are increasingly concerned about the cost of financing. Most expect rate hikes in Asia Pacific to be relatively less frequent.
Cap rates across all sectors have expanded across most Asia Pacific markets, with 58 percent of respondents expecting cap rates to move out. While Cap rates are expected to expand by a range of 10 basis points to 200 bps, cap rates in Japan are likely to remain stable.
More buyers are seeking discounts as sellers attitudes soften. The gap in price expectations is widest in the class A segment.
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