Investors have a love/hate relationship with real estate. They dislike the management fees. They dislike the illiquidity. They dislike the complexity. But they love the cashflow.

Despite economic-reform concerns in China and hesitant growth in Japan, “corporate and investor confidence in Asia Pacific remains intact” and is supporting solid demand from both real estate occupiers and investors.

The summer stock swoon continued in August as investors were spooked by the Chinese government’s surprise devaluation of the yuan, the prospects of the global economy slowing further and, as a result, uncertainty over the US Federal Reserve’s interest rate intentions.

First quarter 2015 saw the highest fundraising volume since third quarter 2008, according to Institutional Real Estate, Inc’s FundTracker database. 

The Asia Pacific office market presents a real mixed bag for investors. For the region as a whole, fundamentals are decent. For individual markets, however, it is a land of extremes.