Important investment considerations for property investors

Roberto Versace, head of tactical real estate, Asia Pacific, at APG Asset Management Asia, discusses short- and medium-term risks to real estate markets as a result of the pandemic, as well as what institutional investors should keep in mind over the next few years.

Where do institutional real estate investors stand on risk, after the economic disruption from the coronavirus pandemic and stock market selloff this spring?

Investor risk is clearly elevated, which is evidenced through widening corporate credit spreads, risk premia and stock market volatility. With limited visibility on the economic outlook, despite the material global stimulus measures to date, risk levels will likely remain elevated as earnings and capital values come under pressure, the extent of which will be determined by the resilience of the individual sector.

Prior to the novel coronavirus outbreak, investors were likely more conscious of the lower