This year remains a risk-on year that will test the nerves of real estate investors. We believe market risks cannot be skirted totally, but surely can be prepared for. In particular, investors should not let their guard down by underwriting excessive capital growth and it is inevitable that return expectations have to be adjusted downwards. All that said, the search for higher returns will continue to see investors put money into opportunistic plays and niche asset classes, although these may also serve as means to gain exposure to structural growth themes. We advocate taking a balanced approach – maintaining a defensive stance while remaining tactical in seeking and building on longer term opportunities in Asia Pacific.