Asia Pacific RE investors shift to China and South Korea
COVID-19 has forced Asia Pacific non-listed real estate investors to reallocate from Australia and Japan to China and South Korea, according to not-for profit organisation the Asian Association for Investors in Non-Listed real Estate Vehicles (ANREV).
Although investors showed a continued appetite for Asia Pacific real estate, 75% of senior investors who participated in the survey on market sentiment amid COVID-19 said they would be revising their investment plans, with 53.3% of the respondents revealing their favoured locations were China and South Korea.
The move came at the expense of Australia and Japan, as only 33% of respondents stated they planned to increase their allocations to those markets, while 17% and 8%, respectively, declared intentions to decrease their allocations to these markets.
By comparison, none of the surveyed managers were planning to decrease their allocations to China or South Korea.
In terms of sectors, there had been strong interest to increase allocations to the industrial and logistics sectors (93.8% of respondents), as well as residential (56.3%) and data centres (25%).
“Despite the havoc brought by COVID-19, senior investors in Asia Pacific’s real estate market still appear to have strong appetite to increase their exposure to the region, an indication of the important role it continues to play in diversifying investment portfolios – even during difficult times,” Amélie Delaunay, director of research and professional standards at ANREV, said.
“It is worth bearing in mind that non-listed real estate investing is often a long-term commitment and that Asia Pacific real estate as a whole continues to rest on sound fundamentals that will continue to make it an attractive investment destination for years to come.”
AUTHOR
Oksana Patron
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
