CBRE APAC Investor Intentions Real Estate Survey 2024: Top 5 Countries Net Buying Intentions are South Korea +15%, Japan +8%, Singapore +8%, Australia
23rd February 2024 | Hong Kong
CBRE, the world’s largest commercial real estate services & investment firm, has released the CBRE APAC Investor Intentions Real Estate Survey 2024, providing key insights from 510 APAC investors on investing in real estate (Investors: Real Estate Fund, Developer, Owner, Operator, REIT, Insurance Company, Private Equity Fund, HNWI, & Family Office). For 2024, the Net Buying intentions remain largely unchanged, +6% 2023 vs +5% 2024. 2024 Selling intentions is High. The Top 6 Countries Net Buying Intentions are South Korea +15%, Japan +8%, Singapore +8%, Australia +7%, Mainland China +7%, Hong Kong -11%. Top 5 Most Active Investors Type – Family Offices & HNWIs, Institutions, Equity Fund Managers, Developers & REITs, Debt Providers. Top 5 Investors by Country to increase real estate allocation in 2024 – Australia, South Korea, Mainland China, Singapore, Japan. Top 6 Reasons to increase allocations to real estate in 2024 – Reasonable price adjustment, More distressed opportunities, Stabilizing interest rates & potential for decreasing debt costs, Mandate to deploy capital, Improved expected total return, Capitalise on potential income return growth. Top 9 Major Challenges for Real Estate Investment in 2024 – Central bank policy rates remain higher for longer, Fear of a recession & economic uncertainty, Mismatch in buyer & seller expectations, Escalating labour & construction cost, Uncertain geo-political landscape, Weak tenant demand, Shift in credit availability & loan terms, Higher &/or more persistent inflation, Impact of currency fluctuation. Top 7 Sectors for Investments – Industrial & Logistics, Office, Residential (Multifamily / build-to-rent), Residential (build-to-sell), Hotels / Resorts, Retail, Alternatives. Top 9 Preferred Alternative Asset for 2024 – Healthcare-related assets, Real Estate Debt, Data Centres, Retirement living & Senior housing, Student living, Cold storage, Infrastructure (social & economic infrastructure), Self-storage. Top 3 Real Estate Investors Price Expectation for Discount- Grade A Office, Shopping Mall, High Street Retail. Top 5 Preferred Developed Markets for Cross-Border Investment – Japan, Singapore, Australia, South Korea, Hong Kong. Top 3 Preferred Emerging Markets for Cross-Border Investment – India, Vietnam, Thailand. Price premium of ESG assets vs non-ESG asset – 74% (No price premium: 26%). See below for key findings & summary | View report here
“ Top 5 Countries Net Buying Intentions are South Korea +15%, Japan +8%, Singapore +8%, Australia +7%, Mainland China +7%, Top 3 Sectors for Investments are Industrial & Logistics, Office, Residential, Top 3 Preferred Alternative Asset are Healthcare-Related Assets, Real Estate Debt & Data Centres “
- Article continues below - Quick Links, Ads & Announcements Caproasia Access | Events | Summits | Register Events | The Financial Centre The 2024 Investment Day | 2024 Family Office Summits | Family Office Circle Sign Up Basic Member: $5 Monthly | $60 Yearly Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680) The 2024 Investment Day 6th March Hong Kong | 13th March Singapore Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 6th March 2024 in Hong Kong, 13th March 2024 in Singapore. Visit | Register here The 2024 Family Office Summit10th April Hong Kong | 24th April Singapore Join 100+ single family offices & family office professionals in Hong Kong & Singapore Links: 2024 Family Office Summit | Register here
CBRE APAC Investor Intentions Real Estate Survey 2024 CBRE APAC Investor Intentions Real Estate Survey 2024
CBRE, the world’s largest commercial real estate services & investment firm, has released the CBRE APAC Investor Intentions Real Estate Survey 2024, providing key insights from 510 APAC investors on investing in real estate (Investors: Real Estate Fund, Developer, Owner, Operator, REIT, Insurance Company, Private Equity Fund, HNWI, & Family Office). View report here
CBRE APAC Investor Intentions Real Estate Survey 2024:
Investors Profile:
- Real Estate Fund – 34%
- Developer / Owner / Operator – 24%
- REIT – 10%
- Insurance Company – 9%
- Private Equity Fund – 7%
- HNWI / Family Office – 5%
- Pension Fund – 3%
- Others – 8%
Investors Country:
- Japan – 23%
- Mainland China – 21%
- Singapore – 12%
- Taiwan – 11%
- Australia – 8%
- Hong Kong – 9%
- South Korea – 11%
- India – 1%
- Others – 5%
Summary:
On Real Estate Investment & ESG
1) Investors Buying & Selling intentions in 2024
2024 Buying & Selling intentions:
- Net buying intentions – Unchanged (+6% 2023 vs +5% 2024)
- 2024 Selling intentions – High
Net Buying Intentions (Last 10 years):
- 2015: +23%
- 2016: +1%
- 2017: +6%
- 2018: +3%
- 2019: +6%
- 2020: +13%
- 2021: +25%
- 2022: +24%
- 2023: +6%
- 2024: +5%
Top 6 Countries Net Buying Intentions:
Investors Insights:
- More than 40% of investors intend to sell assets in 2024 to realise returns & repay debt
- Selling intentions strongest in Australia, Singapore & Hong Kong
- Buying intentions strongest in South Korea, Japan & Singapore
- Buying intentions weakest in Hong Kong
- Hong Kong economy expected to recover in 2024 supported by stronger growth in Mainland China & potential interest rate cuts
- Weak buying intentions from Mainland China investors
Top 5 Most Active Investors Type:
Investors by Country to increase Real Estate Allocation in 2024:
- Australia – More than 53% of investors to increase allocation
- South Korea – Around 50% of investors to increase allocation
- Mainland China – Around 42% of investors to increase allocation
- Singapore – Around 39% of investors to increase allocation
- Japan – Around 37% of investors to increase allocation
- Hong Kong – Around 27% of investors to increase allocation
Top 6 Reasons to increase allocations to Real Estate in 2024:
- Reasonable price adjustment – 23%
- More distressed opportunities – 17%
- Stabilizing interest rates / Potential for decreasing debt costs – 14%
- Need / mandate to deploy capital – 14%
- Improved expected total return – 11%
- Capitalise on potential income return growth – 7%
9 Major Challenges for Real Estate Investment in 2024:
Top 6 Major challenges sourcing debt for real estate investment:
Expected direction of central bank policy rates in 2024 (Majority of respondents):
- Mainland China – Reduce less than 50 bps
- South Korea – No change or Reduce less than 50 bps
- Hong Kong – No change or Reduce less than 50 bps
- Singapore – No change
- Australia – No change or Increase by less than 50 bps
- Japan – Increase by less than 50 bps
2) Preferred Investment Strategies & Sectors
Top 7 Sectors for Investments:
Top 9 Preferred Alternative Asset for 2024:
Investors Price Expectation for Discount:
- Grade A Office (value-add) – 65% of investors expect discount
- Grade A Office (core) – 61% of investors expect discount
- Shopping Mall – 57% of investors expect discount
- High Street Retail – 51% of investors expect discount
- Prime Logistics – 49% of investors expect discount
- Multifamily – 36% of investors expect discount
- Hotel – 35% of investors expect discount
Preferred Strategies & Sectors in 2024:
Value-Add Strategy Preferred Sector:
Core-Plus Strategy Preferred Sector:
Core Strategy Preferred Sector:
Opportunistic Strategy Preferred Sector:
- Industrial & Logistics
- Residential
- Office
- Hotels / Resorts
- Others
- Retail
Distressed assets & NPL Strategy Preferred Sector:
Debt Strategy Preferred Sector:
3) Investment Destination
Top 5 Preferred Developed Markets for Cross-Border Investment (Key strategy):
Top 3 Preferred Emerging Markets for Cross-Border Investment (Key strategy):
4) ESG & Commercial Real Estate Investment
Top 10 ESG evaluation for new investments in 2024 (No. of Respondents):
Price premium of ESG assets vs non-ESG asset (No. of respondents):
- No price premium – Around 26% (74% price premium)
- Less than 5% premium – Around 43%
- 6% to 10% premium – Around 24%
- 11% to 15% premium – Around 5%
- 16% to 20% premium – Around 1%
Desired office locations in the next 3 years (To increase):
- ESG-certified buildings – 64%
- Flexible or cowering spaces – 52%
- Decentralised offices – 36%
- Grade A CBD offices – 30%
- Grade A offices in major districts outside CBD – 28%
- Grade B CBD offices – 24%
Desired office locations in the next 3 years (To reduce):
- Grade B CBD offices – 31%
- Grade A offices in major districts outside CBD – 25%
- Grade A CBD offices – 20%
- Decentralised offices – 18%
- Flexible or cowering spaces – 12%
- ESG-certified buildings – 3%
The CBRE APAC Investor Intentions Real Estate Survey 2024, providing key insights from 510 APAC investors on investing in real estate (Investors: Real Estate Fund, Developer, Owner, Operator, REIT, Insurance Company, Private Equity Fund, HNWI, & Family Office). View report here
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
You are:
InvestorProfessionalFamily OfficeExecutive
Select:
SubscriptionMembershipEvents
Interests / Events / Summits / Roundtables / Networking:
Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights
Your Name*
Company*
Job Title*
Email 1 (Work / Personal)*
Email 2 (Work / Personal)
Country
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
- Professional Investor
- Family Office
- HNW Partnership
- Family Office Circle
- Family Office Networking
- Family Office Roundtable
- The Family Office Summit
- March 2024 - Hong Kong
- March 2024 - Singapore
- June 2024 - Hong Kong
- June 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Visit: The Investment Day | Register: Click here
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
Owl Media Group takes pride in providing social-first platforms which equally benefit and facilitate engagement between businesses and consumers and creating much-needed balance to make conducting business, easier, safer, faster and better. The vision behind every platform in the Owl Media suite is to make lives better and foster a healthy environment in which parties can conduct business efficiently. Facilitating free and fair business relationships is crucial for any thriving economy and Owl Media bridges the gap and open doors for transparent and successful transacting. No advertising funds influence the functionality of our media platforms because we value authenticity and never compromise on quality no matter how lucrative the offers from advertisers may seem.