Colliers’ Latest Insights on APAC Cap Rates


Colliers has unveiled its Q1 2024 APAC Cap Rates Report, shedding light on the performance across office, retail, and industrial sectors in 19 markets. This comprehensive analysis reveals that 11 of these markets have witnessed movements in cap rates.

“The Asian market remains stable, without any significant factors driving movements in cap rates,” states Dorothy Chow, Head of Valuation & Advisory Services at Colliers Hong Kong. However, Australia and New Zealand have experienced shifts in cap rates, particularly in the office and industrial sectors. The retail sector, meanwhile, has seen stability over the past quarter, with exceptions in Brisbane, Melbourne, and Sydney.

Dorothy Chow highlights that the stability in Asian markets is mainly due to oversupply and pressure on rents, leading to increased cap rates. The oversupply situation in some Asian markets will require time to absorb, with recovery hinging on overall business activities and economic conditions, placing additional pressure on rental growth.

Key Findings:


  • Office Sector:
    1. Beijing is grappling with declining demand, resulting in high vacancy rates. Investors are wary of oversupply and falling rents.
    2. Bangkok has seen a slight uptick in cap rates due to changes in rental rates, though sales transactions remain limited.
    3. Shanghai faces challenges in attracting leasing demand, causing downward pressure on rents.
    4. Jakarta is experiencing an influx of new office supply, with businesses optimizing existing spaces instead of expanding.
    5. In Sydney and Auckland, significant asset sales are anticipated, which may provide clearer pricing benchmarks.

  • Retail Sector:
    • Beijing and Shanghai enjoyed robust retail performance during the Chinese New Year.
    • Investors in Hong Kong remain cautious due to vacancy rates.
    • Jakarta has seen increased visitor numbers and new brand entries, yet the competitive landscape with new malls keeps investors cautious.

  • Industrial Sector:
    1. Hong Kong’s industrial sector remains stable, buoyed by positive import and export figures.
    2. Bangkok has witnessed increased sales transactions, while rental rates have remained flat.
    3. Beijing is dealing with declining rental rates and increased occupancy in neighboring cities, impacting the industrial market.
    4. Shanghai is experiencing cautious investment sentiment, leading to high cap rate expectations from investors.

For further insights, contact Dorothy Chow, Head of Valuation & Advisory Services at Colliers Hong Kong. You can access the full report here.

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