Schroders: Asia Pacific real estate market update

China’s reopening and the perception that interest rates are near their peak have brightened economic prospects in the Asia Pacific region (APAC), according to Andrew Haskins, head of strategy and investor advisory, real estate, Asia Pacific, Schroders Capital, in the firm’s market update.

Even so, commercial real estate investment in first quarter fell to its lowest quarterly level since 2010. The office sector is still under pressure, partly due to high supply. Retail and hospitality should benefit in 2023 from higher consumption and the return of tourism. Secular growth trends are still driving logistics, but the sector faces oversupply in certain markets. Investors are paying attention to alternative asset types, but these will show uneven volume growth. Property yields are rising, and are starting to approach effective debt costs, but it will take time for market sentiment to recover.

To read the full update,