The Hunger of Real Estate Investors in the Asia-Pacific Region Grows in 2022

The years 2020 and 2021 were characterized by COVID-19 lockdown measures and economic uncertainty. This has also affected real estate investors in the Asia-Pacific region. However, the outlook is expected to improve again in 2022, according to a study by CBRE, which surveyed real estate investors from the Asia-Pacific region. In 2021, commercial real estate investment was still $140 billion, up 30% from the previous year.

According to the study, nearly 60% of investors surveyed said they would buy more again in 2022. That’s the same level as in 2021, whereas in 2020 the figure was just over 40%.

By contrast, the proportion of respondents who said they would buy less fell to just under 5%, compared with just over 8% in 2021 and almost 15% in 2020.

Tokyo is the Most Popular City for Cross-Border Investment, Above Shanghai

More than 60% of the investors surveyed are interested in cross-border investments, and Tokyo remains the most popular destination for investment. B-grade offices, retail and multi-family buildings are expected to be the most popular.

After Tokyo, Shanghai is in second place. Here, interest is mainly in office, industrial parks and logistics properties.

In third place is Singapore, which has long been a popular investment destination for real estate investors. Here, investors see lucrative opportunities in office and hotel properties.

Other popular destinations include Sydney, Beijing, Hong Kong, Seoul, other Japanese regional cities, Ho Chi Minh City and Osaka.

Economic Uncertainty Remains Biggest Challenge in 2022

New COVID waves that have led to renewed closures across Asia are causing investors to see economic uncertainty as the biggest challenge for 2022. This premonition has been further confirmed after the survey with the war in Ukraine, economic and financial sanctions against Russia, unexpectedly rising inflationary pressures and lockdowns in major Chinese cities such as Shanghai and Shenzhen.

In economically uncertain times, investors tend to seek safety above all. This was also confirmed in the survey, with more than 45% of respondents seeing rapidly increasing real estate values, especially for high-value properties due to intense competition, as the second biggest challenge for 2022. Intense competition is driving up prices, and this is exacerbated by the uncertain environment.

Following this, just over 40% of respondents said that the new COVID waves threatened the opening of the border, which remains a major challenge.

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