Emerging Asia, Developing Asia top list of target investment areas
23% of investors want in on each.
According to CBRE's 2014 Asia Pacific Investor Intentions Survey, Asia retained a lot of appeal for investors, with Emerging Asia and Developed Asia topping the list of preferred regions to invest in globally, and with 23% of investors saying they targeted each.
There was also strong interest in investing in North America and Western Europe as the recovery in the West takes hold, with 20% and 16% of investors interested in these markets, respectively.
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The office sector was identified as the most popular sector for investment (32%) followed by industrial and logistics (29%) and residential (21%).
The strong interest in industrial and logistics assets is driven by the comparatively better yields in the sector and strong demand for modern logistic facilities across the region. However, there are ongoing challenges around sourcing investable assets and land acquisitions.
The interest in residential assets is supported by the continuing wave of urbanization in the region. Meanwhile, interest in retail assets cooled somewhat from previous years in part because of the challenges of sourcing investable assets, and pricing.
Within Asia Pacific, China is the preferred destination for cross-border investors—excluding respondents selecting their own market of domicile—followed by Australia and Japan. Meanwhile, Australia industrial and logistics, Australia offices, China industrial and logistics, Japan offices and Australia retail were identified as the most attractive country-sectors for investment.