High interest rates drive down Asia Pacific CRE investment volume
High interest rates continued to impair investment in major Asia Pacific markets, driving down commercial real estate investment volume by 20 percent year-over-year to $27.3 billion, according to CBRE in its Asia Pacific figures for third quarter 2022.
The report also concluded:Office: Macroeconomic headwinds and inflationary pressure weighed on office leasing activity in third quarter 2022, pulling down net absorption by 11 percent quarter-over-quarter to 10.1 million square feet. Finance remained the main engine of leasing demand, with activity also seen from tech and co-working platforms. Rents increased by 0.4 percent quarter-over-quarter and 1.1 percent year-to-date. Retail: Retail sales growth slowed as global recessionary fears continued to cloud consumer confidence. However, vacancy declined across the region along with the further easing of pandemic-related restrictions. Rents fell 1.8 percent year-over-year bu