Investment activity is forecast to increase steadily across the Asia Pacific region in 2024 , according to Colliers’ (NASDAQ and TSX: CIGI) 2024 Global Investor Outlook.

This year’s report points to steadily increasing activity in APAC markets throughout 2024 as certainty around the policy environment takes hold, gaps between buyers and sellers narrow and more investors move to deploy capital.

“2024 definitely looks more positive than 2023, with a lot of pent-up equity which is looking to find a home,” Chris Pilgrim, Colliers Managing Director of Global Capital Markets, Asia Pacific, said. “The depth of capital in most Asian markets has to diversify.

Hospitality and related Retail regaining strength; more exploration of specialised assets and sub-sectors, investors are being drawn to a resurgence in hospitality and retail connected to the revival of consumer spending and tourism and business travel regionally.

Australia:

While Luxury resorts are performing strongly amid the resurgence of leisure travel and desire for experiences post pandemic, we expect capital values for the broader Australian hotel market to also remain competitive compared to global peers, as international travel ramps up and revenue defends against economic fluctuations with increases in business travel, music and sporting event demand, as well as continued strength in MICE, said, Karen Wales Head of Hotels, Transaction Services, Australia.

Karen Wales, told The Hotel Conversation, “While interest rates are widely viewed to have stabilised, the lagged effects of tightening still have the potential to slow growth through 2024 but the impacts are likely to be mixed.  Cost-of-living pressures are expected to weigh on outbound travel and growth is expected to normalise as the recovery is more advanced than for inbound travel providing a boost to domestic leisure travel. The current growth profile projects a strong and progressive recovery in international visitation, supported by ongoing increases to aviation capacity and strong desire to travel to Australia, as well as favourable exchange rates.

Room rate growth, which has played a significant role in the recovery to date, is starting to wane but higher rates are largely being maintained even as demand rebalances, added Karen Wales Head of Hotels, Transaction Services, Australia.

Japan:

Hotels particularly is expected to be the sector with the highest growth potential, as the weak yen will increase the number of international travellers, as well as international standard pricing being easier to achieve, and operators can easily increase revenues.” Commented, Hisakazu Iso Deputy Managing Director & Head of Capital Markets, Japan

Singapore:

The survey shows metropolitan shopping malls and mid-tier hotels are particular areas of focus, with Singapore a key market where investors are looking at assets to buy into the city-state’s retail and hospitality upswing, added, Tang Wei Leng Managing Director and Head of Capital Markets & Investment Services, Singapore.

About the 2024 Global Investor Outlook

The fourth edition of our annual outlook for global property investors synthesizes the views of Colliers Capital Markets experts and the results of a survey of international investors. The findings and opinions featured in the report are shaped by their responses. 

Read and download the full report 2024 Global Investor Outlook.

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