According to new research by CBRE, real estate debt in Asia Pacific is increasingly cementing itself as an alternative investment class as global investors seek new opportunities to deploy capital into this sector.
Asian outbound capital deployment remains robust amid a recent slowdown of Chinese outbound real estate investment. In the first half of 2018, outbound investment activity totaled $25.3 billion, led by Singaporean capital.
Increased interest in self-storage facilities, data centers, student accommodation, education and aged care as investors chase yield
CBRE is reporting that investors in Asia Pacific real estate in 2017 remain heavily focused on yield spreads when seeking assets as investment intentions, and are moving further away from capital appreciation strategies.
A newly launched index that derives the price of prime residential and commercial development land in 13 major cities across Asia, saw mixed results in the first half of 2016.
According to CBRE's second-edition of Four Quadrants Asia Pacific, as several interest rate cuts were recorded across the region, debt financing turned more active while the equity funding market slowed down.
Total commercial property investment turnover in Asia Pacific in the first quarter of 2016 declined by 36% quarter-on-quarter.
This week the Federal Open Market Committee (FOMC) raised U.S. interest rates for the first time since 2006. The 25-basis-point (bps) increase to the target federal funds rate was widely anticipated.
Cross-border property investment in Asia accounted for 36% of total turnover year-to-date - rising 36% quarter-on-quarter to $10.6 billion - marking this the highest total recorded since 2008.
Asian cross-border commercial real estate (CRE) investment in Q1 2015, at $8.6 billion, constituted the strongest recorded Q1 outbound performance since major Asian outflows began.
Tokyo cemented its lead as the top destination in the APAC region for market entries by international retailers, as cities in Asia Pacific saw 464 new retail entrants in 2014.
CBRE Asia is predicting that domestic and Asia-regional firms will drive leasing markets in APAC in 2015.
Office leasing momentum generally remained steady across the Asia-Pacific (APAC) region in Q3, 2014.
According to STR Global, hotels in the Asia Pacific region experienced mostly positive results during July when reported in U.S. dollars.