Diversification will affect 2024 real estate investments

As investors diversify their asset classes, 2024 will change the Asia Pacific real estate market.

According to Christopher Pilgrim, managing director of Colliers Asia Pacific Global Capital Markets, investor behavior has changed over the previous year and will continue in 2024.

Pilgrim noted that investors are adapting their investing methods across geography and asset classes. He noted that regional investors would prioritize geographic diversity.

The expert has seen institutional money flow into “alternative” asset types including multifamily, elder living, and student housing. This move emphasizes a strategic repositioning towards more profitable routes, he added.

Becoming  propnex property agent in Singapore is also considering worldwide theme investments and other assets. Pilgrim said investors are increasingly attracted to storylines that match with underlying themes, encouraging a strategic approach that transcends market borders.

ESG-compliant investments will remain popular until 2024 as investors realize their worth.

Catherine Chen, director for Asia Pacific Research at Cushman & Wakefield, said Res course may boost industrial rental growth.

Christine Li, director of Research at Knight Frank Asia Pacific, said the flight-to-quality trend in office and logistics would also encourage stakeholders to address sustainability and climate change.

Interest rate stability is projected to boost property transaction volumes next year, transforming the market.

Chen said investors and developers in Hong Kong, Australia, and South Korea had been hit most by interest rate rises.

Pilgrim stated, “2023 has been one of the most volatile in recent history in terms of global interest rate rises and inflation, challenging for both debt and equity investors across Property agent career classes.”

He continued, “The expected stabilization of interest rates will rejuvenate confidence within the debt markets, catalyzing an upswing in lending and borrowing activities.”

Li said that APAC real estate investment markets would “upturn for real estate investment markets” in 2024.

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