Property investment demand may shift to industrial assets: analyst

Investment sales are seen to slowdown in 2023 because of cost pressures.

There is an institution investment demand moving towards high-yielding products including industrial properties, Cushman & Wakefield said.

Meanwhile, the private residential market may also drive investment volumes next year but home developers are cautious and recent acquisitions reflected a selective appetite towards small-medium sites or more prudent bids for large sites.

Whilst investment sales are poised to achieve a three-year high, it decelerated in the second half of 2022. Cushman & Wakefield said this will prolong to 2023 due to the persisting divide between buyers and sellers.

“Nonetheless, total investment volumes have reached $26.9b in the first three quarters of 2022 and could surpass $30b for the whole year, depending on the success of potential deals in the pipeline,” said Cushman & Wakefield.