Based on CBRE Asia Pacific Intentions Survey 2018, South East Asia remains an attractive region for investors due to its strong economic fundamentals that is helping to drive rental value growth as well as the attractive risk-return profile.
Singapore emerged as the most attractive city in South East Asia for investors, followed by Ho Chi Minh City and Jakarta
A greater proportion of investors have shifted their focus from prime and core assets in 2017 towards looking for value-add opportunities in 2018.
With new occupier trends disrupting the real estate industry, investors believe that flexible space, smart buildings and experiential retail are likely to have the most impact on the investment appeal of real estate.
The majority of investors attracted to the region generally held higher expectations of return. 85% of respondents expected returns of more than 6 percent, one third of which anticipated returns of more than 12 percent.
A global economic shock undermining occupier demand was viewed as the most prominent threat to property markets in South East Asia. This was followed closely by concerns that property could be overpriced as well as potential changes in government policy that could dampen market growth sentiments.