Values to fall as region’s markets struggle to recover

The outlook for the Asia-Pacific markets is relatively poor. We think higher-for-longer bond yields will limit the pace of recovery in this cycle globally, but this will be compounded by a weak outlook for economic growth in the region. That will be especially pronounced in Hong Kong, which faces significant structural weakness, causing significant rent declines and driving negative total returns in all four main sectors. We expect Australia to come out on top with total returns of 6% p.a. over 2025-29, boosted by a relatively high income return, with Singapore not too far behind in second place. At the sector level, the story varies markedly by market, but retail and residential generally come out on top over office and industrial.

This inaugural Asia-Pacific Commercial Real Estate Outlook presents our analysis and five-year forecasts for the region’s largest markets across the four major sectors. We’ll be discussing the main takeaways from this report and answering your questions on the APAC real estate outlook in a Drop-In on Thursday, 3rd July. Register here.