Insights: A Bird's Eye View of the Asia Pacific Commercial Real Estate Debt Market
CBRE has today published the company's latest viewpoint on the Asia Pacific commercial real estate debt market. Rising interest rates and the resulting change in property values are the major criteria influencing investment decisions in the current economic climate. This analysis demonstrates how these factors are creating a funding gap.
Please see here for CBRE's
latest viewpoint on the Asia Pacific commercial
real estate debt market.
- CBRE estimates that there is currently US$177 billion of outstanding senior commercial real estate debt in Asia Pacific, with a debt funding gap of US$5.8 billion set to emerge in markets between 2023-2025.
- By total volume, Australia will face the biggest funding cap from 2023-2025, followed by Japan, Korea and mainland China.
- Office properties are likely to face the greatest funding gap of any sector due to projected declines in capital values, with most markets set to experience a fall of 5% - 20% between 2023-2025.
- Significant increases in interest expenses may force some smaller investors and developers to liquidate assets to shore up balance sheets in the short-to-medium term. CBRE expects developers in Australia and Korea with relatively higher exposure to the office sector to be net sellers in 2023.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world's largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com