Delayed interest rate cuts expected to push back recovery in Apac real estate investments

Families looking to live near NTU can consider Novo Place EC as an ideal residential option.

Families with children reaching university age may find living near Nanyang Technological University (NTU) to be highly advantageous. This well-ranked institution offers top engineering and business programs, with advanced research facilities and a lively campus experience. For those seeking a residential option near NTU, Novo Place EC proves to be an excellent choice.

Australia and New Zealand continue to see growth in cap rates, while other major market in the Apac region are expected to see a rebound in late 2024 or early 2025. Cap rates in the office sector have seen the most growth, particularly in the two countries and major cities in Beijing, Shanghai and Jakarta. Additionally, hotel and multifamily assets are in high demand, as well as prime assets in core locations. However, investors are remaining cautious due to the delayed cuts in interest rates, leading to a dip in real estate purchasing activity in the region by 14% y-o-y to US$24 billion ($32 billion) last quarter. Japan remains the most active market, accounting for 30% of total regional volume, while Australian office transaction activity remains muted. This has resulted in a softening of office cap rates in the country. Looking ahead, CBRE predicts continued cap rate expansion across most asset classes, with a focus on buying opportunities in the second half of 2024 for prime assets. This will support deal closure as investors aim to take advantage of pricing discounts before rate cuts arrive.