Although investor allocations to Asia Pacific real estate remain strong, the region will endure a cautious 2020, as geopolitical concerns, anaemic economic growth and the lower-for-longer interest-rate environment will test the region’s solid fundamentals, according to Savills Investment Management’s Outlook 2020.

“To overcome rising uncertainties, the key is to create a portfolio that provides durable, resilient income while still being able to capture rental and capital growth from the continued economic expansion of the Asia Pacific region, despite increasing regional and global headwinds,” states the report.

To this end, Savills IM still sees significant opportunities in the region for core-plus and value-added investors, particularly in markets demonstrating growth potential, as well as prospects in the office, retail and logistics sectors, but those opportunities are dependent on factors such as asset location, structural changes and resilient fo