Asia-Pacific funds overtake global investors as they increase bets on regional property markets
- Regional investors deployed nearly 70 per cent more capital in the third quarter versus the 10-year first-quarter average, while global funds’ outlay was practically flat
- Interest rates, geopolitics are likely to weigh on capital flows into regional property markets next year, analysts say
Lingering uncertainties such as geopolitics and high interest rates are likely to weigh on capital flows into regional property markets next year, analysts said.
Western investors deployed US$12.76 billion in the third quarter of this year, practically unchanged from the 10-year first-quarter average of US$12.75 billion, while regional investors boosted theirs by nearly 70 per cent to US$24.56 billion in the same period, according to data from the Washington-based think tank, which has offices in London and Hong Kong.
Investors from the West had invested as much as US$37.87 billion in Asia-Pacific real estate as recently as the second quarter of 2022, compared with regional investment of US$21.93 billion, the ULI data showed.
That trend is corroborated by JLL data, which showed Western funds’ proportion of investment in Asia-Pacific real estate had shrunk from 16.9 per cent in 2019 to 9.9 per cent in the first three quarters of this year.