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PGIM Real Estate’s 2024 outlook for Asia Pacific
Research - DECEMBER 15, 2023

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PGIM Real Estate’s 2024 outlook for Asia Pacific

by Lewis Dayton

Real estate returns in Asia Pacific should start to recover in 2024 as capital values stabilize and income returns prove resilient, says PGIM Real Estate in its 2024 Real Estate Outlook for the region. However, the degree of recovery will vary market to market.

Japan is a notable exception to the Asia Pacific real estate recovery trend, as the country has experienced a counter-cyclical market during the past two years. Japan’s significantly lower cap rates will likely begin to moderate in 2024.

Australia and South Korea markets are expected to have a firmer recovery over the next few years than other markets in the region.

Rental growth prospects remain solid across much of Asia Pacific, though rental growth momentum is moderating for office. Grade A CBD office is expected to continue to see rental growth over the next couple of years, while grade B CBD office is projected to experience slight declines in rental growth. PGIM Real Estate notes a shift

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