APAC economic growth accelerated in 3Q22 as China rebounded. Growth should slow, but the region is expected to hold up better as the US and Europe enter recession in 2023. Wide bid-ask spreads remained a hurdle for deal closings. Cap rates loosened slightly and will move out further in the next 1-2 quarters. Japan still offers attractive opportunities.
Wai-Fai Kok, Head of Real Estate Research & Strategy – Asia Pacific
APAC GDP growth accelerated to 4.8% YoY in 3Q22, largely driven by the rebound of China (+4%). Even without its boost, the regional performance was stable as the tightened monetary condition takes its time to feed through. Weaker external demand and increased energy import prices eroded trade balance, but the impact was mitigated by robust private consumptions from post-pandemic spending.
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