CBRE has released its Asia Pacific Trends report for the third quarter of 2024 (3Q24), highlighting a resurgence in commercial real estate investment across the region.
The total investment during this period reached US$32.9 billion, marking a significant 37% year-on-year increase, as investor sentiment improved following the anticipated US interest rate cut in September.
China and Japan remained the region’s largest markets, with substantial international interest in Australia as well. The report revealed that domestic capital continues to lead Japan’s market, while overseas investors focus on offices, residential and hotels. Australia has seen a recovery in purchasing activity, although many investors are still cautious, awaiting further rate cuts.
In the office sector, new supply in Thailand is pushing landlords to update leasing strategies, while Hong Kong has seen a year-to-date rise in leasing activity, supported by investment from China and Singapore.
In the retail sector, demand is strong in central Singapore, while Australia’s return to office trends support steady retail leasing.
The industrial and logistics sector is experiencing subdued demand in Hong Kong but is poised for growth, and the hotel sector has been buoyed by events and MICE travel in Singapore, with Japan’s market continuing to perform robustly.