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Asia Pacific investors bullish on acquisitions in 2016
Buying intentions among Asia Pacific real estate investors remain largely positive, with about 80 percent of respondents indicating they plan to maintain or increase their levels of real estate investing from 2015, according CBRE’s Asia Pacific Investor Intentions Survey 2016. Buying intentions softened for the second consecutive year, however, mainly due to concerns over slower regional economic growth.
Asset pricing and availability of assets were identified as the two biggest obstacles to acquisitions in Asia Pacific. During the past seven years, asset prices have risen at a faster pace than rental growth. About half of respondents said they plan to deploy more than US$500 million in 2016, however, and 63 percent still expect to buy more than they sell in 2016; this percentage fell from 67 percent in the previous year’s survey.
Real estate funds, which have raised more than US$27 billion in the past two years, are expected to be among the strongest net buyers, w