ASIA PACIFIC INVESTOR INTENTIONS SURVEY 2016
Taipei – CBRE reveals the results of its Asia Pacific Investor Intentions Survey 2016, which analyzes the outlook and appetite of Asia Pacific real estate investors for the rest of the year. Overall buying intentions among Asia Pacific real estate investors remain positive with around 80% of survey respondents indicating they plan to buy at a similar level to, or more than 2015. Despite less respondents intending to increase purchasing activity in 2016—only 42% of respondents plan to purchase more this year, compared to 54% in 2015 and 64% in 2014—the majority of investors still expect to buy more than they sell. Respondents identified asset pricing and the availability of assets as the two biggest obstacles to acquiring assets.
Within Asia Pacific, findings reveal that cross-border investors continue to focus on Australia, Japan and China; collectively, these three markets account for about 60% of respondents’ interest. Australia remains especially popular among Asian investors, in particular Chinese and Singaporean investors, whilst foreign investor interest in Japan is also strong, led mainly by North American investors. Even though investment interest in China declined amongst international investors—on the back of the country’s economic slowdown, stock market volatility and currency depreciation—sentiment among domestic investors remains relatively firm.
The office sector retained its position as the most preferred sector for investment (32% of respondents) for the third consecutive year. Continued business growth in Asia Pacific, especially by the service sector, supported solid investment demand for prime assets in this sector. Logistics follows as the second most attractive investment sector. However, hotels and resorts have seen a particularly significant surge in interest, jumping from just 1% in 2014 to 14% in 2016. Demand in this sector is particularly strong in Australia and Japan, where weaker currencies have supported strong growth in tourism arrivals, especially from China.
Preferred Sector for Investment
Source: CBRE Asia Pacific Investor Intentions Survey 2014, 2015 and 2016
Asia Pacific investors are demonstrating a stronger appetite for outbound investment this year with 42% of respondents intending to invest outside the region, up from 31% in 2015. South Korean investors retained the most positive attitude towards outbound investment, followed by Singaporeans.
“The search for higher income returns and access to a larger pool of core assets are the key reasons behind overseas real estate investments, especially among Taiwan investors. Taiwan investors overall are broadening their interest from Asia to the rest of the world, asset pricing and the availability of assets are the two biggest obstacles to acquiring assets according to surveyed respondents.” said Joseph Lin, Managing Director, CBRE Taiwan.
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated 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. Please visit our website at www.cbre.com.
