Real estate investment in Asia-Pacific is projected to drop 5 to 10 percent year on year (yoy) in 2023, following a steep 25 percent yoy decline this year, amid tumultuous economic conditions that are weighing on sentiment.
According to a study by real estate consultancy JLL, hospitality properties are the only real estate assets likely to book steady growth next year, as capital inflows toward hotels are expected to rise around 6 percent yoy, despite slowing down from this year’s 10 to 15 percent growth
thanks to border reopening in many Asia-Pacific countries.
JLL estimates that real estate investors will also look to sectors benefiting from structural tailwinds and higher potential returns, such as data centers, logistics and a slew of scheduled greenfield projects in emerging markets, including India and Southeast Asia.
Japan, meanwhile, is predicted to emerge as the most attractive real estate investment destination thanks to a weakening yen coupled with the country’s low interest rates.
Singapore’s status as a safe haven and its sound property fundamentals will continue to attract investors, while Australia will likely draw core investors because of the country’s highly transparent framework and low beta characteristics. Source:The Jakarta Post
