Most investors take a favorable review towards Asia Pacific real estate, although there could be a shift of interests in sectors and asset classes this year. A new survey from CBRE found that 59 percent of those surveyed intended to buy more properties in 2022. That could lead to a potentially record-breaking 12 months.
“Despite the spread of new variants of COVID-19 leading to a resurgence of infections in many markets over the course of 2021, investment sentiment towards Asia Pacific real estate remains positive, with respondents from Singapore, Korea, Japan and Australia the most optimistic,” the CBRE 2022 Asia Pacific Investor Intentions Survey explained.
It continued, “The upbeat overall mood has led CBRE to forecast that total investment turnover will increase by five to ten percent to around USD150 million in 2022. Should this total be achieved, it would set a historical high for annual commercial real estate transaction volume in the region.”
In Southeast Asia, Singapore and Ho Chi Minh City were named among the top-10 cities for real estate investment. Tokyo was voted as the leading destination with Shanghai, Sydney and Beijing also in the top five.
Logistics is the preferred sector for property investment this year. However, CBRE adds that demand here could weaken due to investors exploring whether or not growth recorded during the COVID-19 pandemic can be sustained.
Meanwhile, demand in the office sector is expected to return after experiencing a downturn in 2021. According to CBRE, 25 percent of those surveyed foresee a turnaround driven by an optimistic outlook regarding future leasing prospects.
Finally, 2022 may also see a growing number of owners willing to sell. Of those asked, 37 percent told CBRE they intended to divest real estate assets this year, up from 34 percent in 2021.