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.
Economic growth in Asia Pacific will remain ahead of the world average in the coming years.
fundamentals are improving in many office markets across the Americas, Asia and Europe.
Prices for prime residential property in the world's leading city markets rose by only 0.2%.
Luxury residential property prices across the globe rose by 6.2% on average in the year to June 2014.
London's West End remained the world's highest-priced office market, but Asia continued to dominate the world's most expensive office locations.