Emerging Trends in Real Estate® Asia Pacific 2024
In the 13 years since the global financial crisis ushered in a long era of ultra-low interest rates, real estate markets across the Asia Pacific had been pushed in the direction of a single mainstay strategy: use cheap leverage to buy core assets, ride the tailwinds of cap rate compression, then exit with generally handsome returns to one of many institutional buyers armed with a share of the region’s growing surplus of investment capital. Today, that cycle has been broken. With interest rates in the West rising at the fastest pace ever, the old formula of leverage and cap rate compression no longer computes, forcing investors to find other ways to drive profit as markets anticipate a reset around new measures of value.
This forecast will give readers a heads-up on where to invest, which sectors and markets offer the best prospects, and trends in the capital markets that will affect real estate.
Report Summary: In the 13 years since the global financial crisis ushered in a long era of ultra-low interest rates, real estate markets across the Asia Pacific had been pushed in the direction of a single mainstay strategy: use cheap leverage to buy core assets, ride the tailwinds of cap rate compression, then exit with generally handsome returns to one of many institutional buyers armed with a share of the region’s growing surplus of investment capital. Today, that cycle has been broken. With interest rates in the West rising at the fastest pace ever, the old formula of leverage and cap rate compression no longer computes, forcing investors to find other ways to drive profit as markets anticipate a reset around new measures of value.
This forecast will give readers a heads-up on where to invest, which sectors and markets offer the best prospects, and trends in the capital markets that will affect real estate.