CBRE’s 2022 Asia Pacific Investor Intentions Survey was conducted between 17 November 2021, and 23 December 2021. A total of 535 mainly Asia Pacific-based investors participated in the survey.
Despite the spread of new variants of COVID-19 leading to a resurgence in new infections in many markets over the course of 2021, investment sentiment towards Asia Pacific commercial real estate remains positive, with respondents from Singapore, Korea, Japan and Australia the most optimistic.
Investors’ desire for returns will drive strong interest in core-plus and value-added opportunities. Amid a more optimistic outlook towards future leasing demand, investors are planning to return to the office sector. Appetite for logistics properties is set to weaken as more investors question whether pandemic-led demand growth can be sustained.
Among alternative assets, data centres remain the top focus, while demand for cold-storage and healthcare is expected to strengthen further. In contrast, demand for real estate debt has weakened amid mainland Chinese developers’ ongoing financial difficulties.
Tokyo remains the most attractive city for cross-border investment, closely followed by Shanghai. Interest is growing in Singapore, Beijing and Sydney along with anticipated rental growth in 2022. Hong Kong SAR has returned to the top ten.
Investors continue to regard the incorporation of Environmental, Social and Governance (ESG) criteria into investment strategies as critical to fulfilling regulatory requirements, preserving future asset value and enhancing brand image.