Act on opportunity
Investment activity is expected to increase across Asia Pacific in 2024, led by a stabilising policy environment, alignment between buyers and sellers, and greater capital deployment.
Our 2024 Colliers Global Investor Outlook is based on a series of interviews with senior Colliers experts and a recent survey of over 900 property investors - 400 of whom were from Asia Pacific. This edition spotlights Asia Pacific Highlights from the Global Investor Outlook Survey. Six key themes emerged that will guide investment decisions in 2024.
2024 Global Investor Outlook: Asia Pacific Highlights
- Rising investment activity through 2024. Almost 60% of Asia Pacific investors expect regional economic growth to contribute positively to the real estate environment in 2024. Acting on this confidence, 75% of respondents plan to dedicate 5-20% of their assets under management to real estate in the future, up from 64% currently.
- Both established and emerging markets in favour. Amid a sombre macroeconomic and policy environment, investors are inclined toward relatively stable markets. Japan was one of the best-performing real estate markets globally in 2023 and is expected to continue to provide value. Australia, India, New Zealand, Singapore, and South Korea are other regional magnets for capital.
- Office and Industrial continue to lead the charge. In our survey, Industrial and Logistics (I&L) emerged as the top asset class for investment. Next in line is office, supported by the strength of the return to office in Asia Pacific relative to the rest of the world, with strong investment interest in prime CBD assets.
- Retail and hospitality regaining strength. A resurgence in consumer spending, tourism and business travel are driving growing interest. Singapore will be a key focus market, as investors look to buy into its retail and hospitality upswing. Investors from North America and EMEA are also shifting focus toward Asia Pacific, drawn by its strong economic and population growth potential.
- Rising ESG awareness driving value. ESG-ready real estate across Asia Pacific will enjoy an advantage in 2024, with 20% investors vouching for ESG factors dictating cap-ex decisions more strongly than ever. Investors increasingly see ESG-graded assets commanding a premium in both the I&L and office sectors.
- New alliances and shifting strategies. Around half of Asia Pacific investors prefer non-traditional routes to deploy capital into real estate, with 21% favouring an indirect approach, 15% exploring platform joint ventures and 10% maintaining separate accounts. 2024 will see more partnerships with developers and platform players.
Dynamic and full of opportunity
The next year holds hope and promise for investors. The ability to act quickly, dig deeply into markets and sectors to identify value, and forge productive partnerships will be key to benefitting from the region’s resurgence.
Get in touch with us
Our clients and investors can continue to rely on Colliers research and insights, informed by local perspectives and global knowledge, to execute their real estate strategies and accelerate progress towards growth and sustainability goals. Connect with our Asia Pacific Capital Markets Regional and Country Leaders:
Asia Pacific – Chris Pilgrim, Lachlan MacGillivray, John Howald
Australia – John Marasco, Adam Woodward, Gavin Bishop, Robert Papaleo, Karen Wales
China – Jimmy Gu, Jason Yang
Hong Kong – Stanley Wong, Thomas Chak
India – Piyush Gupta
Japan – Hisakazu Iso
New Zealand – Richard Kirke
Philippines – Julius Guevarra
Singapore – Wei Leng Tang
South Korea – Sungwook Cho
Taiwan – Derek Huang