Asia Pacific property investment appetite remains strong
Investors will continue to retain a robust appetite for Asia Pacific commercial real estate in 2017, according to CBRE’s 2017 Asia Pacific Real Estate Market Outlook report.
The keen investor interest is attributed to a low interest-rate environment and supportive longer-term regional macroeconomic fundamentals. Overall investment activity, however, will likely be influenced by tight pricing and limited availability of investable stock.
According to the report, investors in Asia Pacific will be more creative this year when formulating their investment strategies to achieve target returns. Potential strategies employed by investors will include adding value by repositioning or enhancement of existing properties with lifestyle amenities and services. In addition, investors with a stronger appetite for risk will seek opportunities outside gateway cities, in locations offering attractive pricing.
CBRE notes the low-yield environment will conti