Despite falling flows across the Asia Pacific region, institutional investor allocations to Australia's real estate market have increased by $1.16 billion in Q2 year-on-year, to $6 billion.
Growing investor appetite for distressed investments is being matched by a wider range of opportunities, even as the region's banks adopt a more conservative lending approach.
Two recent investor surveys reveal the growing appeal of value-added strategies in the region. Their appeal comes against the backdrop of waning interest in real estate by Asian institutional investors.
Family offices and ultra-high net worth investors are bullish on the market this year, following a bumper year in 2023. This is in contrast to institutional investors, who continue to dump property.
As investors gear up to dump the sector this year, offices are likely to bear the brunt. If they sell, they will have to be prepared to drop prices, according to experts.
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