Asia Pacific investment volumes declined by 23% year-on-year in the third quarter to US$21.3 billion, data from our latest Capital Tracker shows. While China was the most active market with US$4.7 billion in transactions, activity was dominated by domestic capital. Trades in Japan took place on the back of strong interest in industrial and logistics assets.

Concerns around vacancy and hybrid work saw some investors diversifying away from office. The high cost of debt exerting repricing pressures. Most markets remain in price discovery mode as investors adjust their targeted returns for acquisitions. Sharp contractions continued across the office and retail sectors, while the industrial and living sectors were boosted by robust occupier demand.

As we approach the end of 2023, investors will weigh the elevated cost of capital against an uncertain macroeconomic environment. How will this affect the outlook for the rest of the year? Which markets and sectors hold the most promising opportunities?

Download our latest Capital Tracker to gain valuable insights and adjust your investment strategies for a strong finish to the year.