Asian investors are likely to continue to search
for higher-yield real estate developments due to
favourable fundamentals and the availability of
capital. The focus is predicted to be on the buoyant
office sector in China and Hong Kong as investors
continue to chase quality office properties.
Despite high confidence levels, there is an element
of caution that is starting to emerge. There has
been a significant change in attitudes to risk over
the past 12 months and this is likely to impact on the
types of properties sought after in the region.
While the market volatility in China has led to a more
cautious approach, we do not think there will be
any significant drop in investment activity, unless
the country’s economy suffers a drastic downturn,
which, at the moment, is unlikely. We anticipate
the lowering cost of debt will continue to be a main
driver of investment activity and investment volumes
in Asia-Pacific in 2016 are set to outperform 2015.