CBRE issues contrarian call to buy office, hotel and retail real estate in Asia Pacific in 2023
- These three sectors offer significant upside opportunities as the commercial real estate market outlook in Asia Pacific turns relatively positive
- Hong Kong SAR and Mainland China are the bright spots in the region, with a post-Covid return to business-as-usual driving recovery and growth
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CBRE forecasts overall 2023 GDP growth at 3.6 per cent for the region. “Hong Kong SAR and Mainland China are leading the growth from the economic and real estate leasing, occupier, and investment points of view,” states Dr Henry Chin, CBRE’s Global Head of Investor Thought Leadership & Asia Pacific Head of Research. “Hong Kong SAR has become attractive again as people do see the city’s value, and the recent lifting of travel restrictions – including the reopening of the border with Mainland China – is also positive news.”
Sectors that have suffered during the pandemic, such as office, hotel and retail, will bounce back quite well, while growth in industrial & logistics is expected to soften. Rentals will remain solid, and occupier demand is on the way to recovery.
Capital markets, on the other hand, will continue to be impacted by interest rate hikes. However, after a quiet first quarter of the year, deals are expected to come through as inflation and interest rates in the region stabilise, with the total volume for investment activities expected to remain similar to the 2022 level.
