The commercial property market in Asia is in focus today. According to the latest Asia Pacific Capital Trends report from MSCI Real Assets, inflationary pressures and a spike in borrowing costs had weighed on dealmaking in APAC in the third quarter of the year,
Investment volume came up to be just US$32.6 billion in Q3, a 38 per cent drop from a year ago.
And across major income producing property sectors, retail fared the worst with transaction volume dropping by over 54% on a yearly basis. There were also signs of yields moving out for some sectors, such as the industrial sector in South Korea.
But why is this the case, and with China doling out support to bolster its property, and higher rates in major economies such as South Korea, what’s the outlook for Asia’s commercial property market?
On Market View, Prime Time’s finance presenter Chua Tian Tian spoke with Benjamin Chow, Head of Asia Real Assets Research at MSCI for more.
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