The start of 2022 saw a flurry of Asia Pacific real estate investment activity with all signs at the time pointing to a post-COVID recovery. That was, unfortunately, derailed by inflation, higher interest rates and geopolitical conflict with these concerns all set to spill over into next year.
CBRE recently highlighted three Asia Pacific real estate investment strategies for 2023 that take into account approach and risk appetite, among other factors. Each one provides investors with a roadmap on how to potentially address what looks to be an increasingly uncertain 12 months.
Conformist Investment Strategies
This concept encourages the purchase of high-quality prime office properties, logistics assets and multifamily properties in select locations. Each asset group offers the potential for yields but these may be lower than the other strategies which come with additional risk.
Contrarian Investment Strategies
The strategy here proposes the early disposal of logistics and multifamily investments which will be in demand. Proceeds should then go towards the purchase of hotels or retail properties. The former is set to benefit from a gradual recovery in international tourism driven by pent up demand while rents in the latter have largely bottomed-out and will likely rebound.
Read More: Is Now A Good Time For Bangkok Hotel Investment?
Vintage Investment Strategies
CBRE explains this strategy as acquiring assets on the public market, such as REITs trading below their NAV and other listed vehicles that are undervalued; debt investment and distressed opportunities; or blue-chip assets which may be discounted but won’t be for much longer.
Overall, CBRE believes each of these Asia Pacific real estate investment strategies can be deployed successfully in 2023 despite global challenges.
Keep Reading: Why has Sihanoukville real estate become a Chinese investment destination?
