Investment enquiries are gradually recovering across the region, particularly in Korea, Singapore and New Zealand. In several markets, 20%-40% of enquiries are from cross-border investors.
Sale and leaseback opportunities continue to emerge. 58% of respondents have observed corporations considering sale and leaseback deals. Companies in the retail, technology and banking/finance industries are most likely to do so.
Cap rate ranges have narrowed since May as pricing is being supported by low borrowing costs and return on investment demand.
Pricing attitude varies across sectors. Buyers are more willing to bid above asking prices for logistics assets, while recent months have seen more sellers willing to discount prices for decentralised offices and shopping malls. Hotel prices have fallen by 10%-30% compared to 2019.
Investment activity will take longer to recover to pre-pandemic levels. 78% of respondents believe a full recovery is not likely until H2 2021.