Asia Pacific Investment Quarterly Q1 2024

Publication

Asia Pacific Investment Quarterly Q1/2024

Across Asia Pacific as a whole, higher borrowing costs, wide bid-ask spreads and persistent global headwinds remain major factors hindering investment sentiment. Bright spots do exist however as Japan, South Korea, Taiwan, Malaysia and Indonesia all reported higher volumes in the first quarter and India saw a spike in industrial/logistics demand alongside data centres and life sciences facilities. As regional elections conclude, we look forward to a more stable political outlook in the second quarter. 

Simon Smith, Asia Pacific 

 

Australia

“While the economic outlook remains uncertain, increasing confidence around the future path of interest rates and improving risk-return prospects for investors are setting the stage for a gradual recovery in investment activity in 2024, into 2025.”  – Katy Dean, Australia

 

China

“Despite continued pressure on the property sector, recent policy initiatives offer a glimmer of hope for real estate investment in China. While the office sector faces headwinds, retail, multifamily, and hotel investments are experiencing significant growth, driven by a resurgence in travel and consumer spending.”  – James Macdonald, China

 

Indonesia

“Indonesia’s property market has posted growth across most market segments. A stable economy and stable interest rates, as well as VAT DTP incentives have helped support positive sentiment.” – Tommy Henria Bastamy, Indonesia

 

Hong Kong

“With private investors and investment funds keen to acquire commercial assets over the past few years, both are now firmly in divesting mode, leaving end users and SOEs as the two remaining active buyer groups in the commercial market in late 2023 / early 2024.”  – Jack Tong, Hong Kong

 

India

“Industrial and logistics has accounted for the largest share of quarterly investment for the first time, as diversification strategies take centre stage. Growth segments including data centers, life sciences and student housing are also expected to provide lucrative opportunities in 2024.” – Arvind Nandan, India

 

Japan

“The Bank of Japan has normalised its monetary policy, ending negative interest rates and yield curve control, providing more clarity on the interest rate environment, leading to expectations of increased transaction volumes.” – Tetsuya Kaneko, Japan

 

Pakistan

“Despite’s Pakistan’s ongoing macroeconomic headwinds, Lahore’s hotel market remains underserved with only one five-star hotel with 605 rooms currently servicing tourism, sports, and business travelers.” – Nadine Malik, Pakistan

 

Philippines

“The Metro Manila office market witnessed a strong Q1/2024, registering a net take up of more than 70,000 sq m. However, the looming supply pipeline brought about by construction delays may yet humble vacancy rates and rents." – Joshua De Las Alas, Philippines

Macau

“Macau has rescinded property market cooling measures, while economic housing stagnates.” – Franco Liu, Macau

 

Malaysia

“The Malaysian real estate transactional market continued to build on its momentum in Q1/2024, showing a strong performance with the highest transaction value for the same quarter since 2021.”– Nabeel Hussain, Malaysia

 

Singapore

“Interest in investment properties has turned from offices to retail and hospitality assets.” – Alan Cheong, Singapore

 

South Korea

“The bid-ask spread between vendors and purchasers in the office sector has narrowed, contributing to a notable surge in transaction volumes as investor sentiment improves.”  – JoAnn Hong, South Korea

 

Taiwan

“The stable economy and increasing construction costs, including the electricity and carbon tax, will continue driving property prices up.” – Erin Ting, Taiwan

 

Thailand

“Despite financial headwinds, Thailand's resilient tourism and export sectors signal optimism for 2024. The hotel sector remains the key asset class driving investment momentum." – Robert Collins, Thailand

 

Vietnam

“Viet Nam's economic outlook for 2024 is positive, with forecast GDP growth of 5.5% to 6.5%, placing the country among the top 20 fastest-growing economies globally. FDI inflows reflect robust growth, with newly registered FDI increasing 58% YoY, highlighting sound investor confidence and a vibrant industrial sector.” - Troy Griffiths, Vietnam