Japan is benefitting from the region’s recovering real estate allocations, attracting residential and logistics allocations from institutional investors. Can it last?
.jpg&c=1&h=194&q=100&v=20244831&w=344)
Tag : msci
Despite falling flows across the Asia Pacific region, institutional investor allocations to Australia's real estate market have increased by $1.16 billion in Q2 year-on-year, to $6 billion.
Following the sector's record first-quarter flows, flows fell 39% year-on-year in the second quarter, according to the latest data.
Allocations into Korean offices have surged this year, even as investors continue to avoid the sector across APAC, a recent report noted.
Australia's office sector is expected to lead the regional rebound in cross-border flows, a new report predicts.
Allocations to the sector’s riskier, less developed markets surge as opportunities become scarce and costly in the region’s core locations.
Seller discounts and overseas buyers are fueling a surge of investment in Korean real estate by a fifth this year, in stark contrast to shrinking allocations across the broader region.
Despite the second-worst quarter for the regional property market in a decade, institutional investors continue to seek out Japan, beating China as the most favoured location.
Solar, wind, and other renewables are the main beneficiaries as Asian institutional investors shift from lagging property bets to green alternatives.
China was the region’s most favoured real estate market in 2023 for Asian institutions but could end 2024 as its most shunned.
The asset management model that has helped funnel more than $16 billion into US real estate may not recover from the latest losses as institutions shift to infrastructure and energy-related investments.
Institutional investors hurt by current price falls may not return until 2029, according to one expert.
