Despite a challenging economic landscape, business confidence is rising across Asia Pacific, with Colliers’ APAC Cap Rates Fourth Quarter 2024 report finding the retail sector was the key driver of movements in cap rates during the quarter.

The report found consumer spending surged during the fourth quarter festive season, benefitting the retail sector in various markets, including Auckland; Bangkok; Bengaluru, India; China; and Hong Kong. Geographically, Auckland saw the most movement in cap rates during the fourth quarter, particularly in the retail and industrial sectors.

According to Colliers, interest rates are declining in many Asia Pacific markets, with further reductions anticipated, though the pace may slow in 2025.

“Amidst economic challenges, resilient business confidence in some markets is emerging, supported by the stabilisation of interest rates across the region,” says CK Lau, Colliers’ managing director of valuation and advisory