Buying intentions among Asia Pacific real estate investors remain largely positive, according to CBRE Research’s 2016 Asia Pacific Investor Intentions survey. Around 80% of respondents indicated they play to buy at a similar level or more than 2015, although buying intentions softened for the second consecutive year, mainly due to concerns over slower regional economic growth; high asset prices; and the previous two years having been a very active period for the market.
The increased uncertainty regarding the global economic outlook ensured core assets remained the most preferred type of asset, although interest weakened this year. The survey also found a stronger interest among investors for good secondary and value-added assets.
Offices remained the top sector for the third consecutive year. Logistics retained its position as the second most popular sector, whilst investor interest in shopping centres and high street retail increased. Hotels/resorts saw a surge in interest. Investors seeking higher yields will continue to turn to alternative sectors in 2016, with the survey registering a slight increase in intentions to invest in real estate debt, student housing, retirement living and healthcare.
Cross-border investors intend to focus on Australia, Japan and China this year. Offices and retail in Australia are the most attractive country/sectors. Asia Pacific investors displayed a stronger appetite for investing outside the region as the less positive outlook and high pricing in Asia Pacific act as a catalyst to push money out of the region. North America is the most preferred region, whilst interest in Europe is also strong.