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Asia Pacific Cap Rates Snapshot | Q4 2022

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Transaction volumes remained at a relatively low level across APAC, however we are expecting a more active second half of the year when there is more clarity on rate movements, while vendors and purchasers recalibrate their expectations.

High inflation and rising interest rates have fanned out into more markets. Transaction volumes remained at a relatively low level across APAC, however we are expecting a more active second half of the year when there is more clarity on rate movements, while vendors and purchasers recalibrate their expectations.

Key Highlights in Q4 2022:

Office Sector
  • Investors in Hong Kong were more cautious over supply outlook as the city was having a historical high vacancy rate at 14.7%1.
  • In Manila, many companies continued to adopt a hybrid mode, putting pressure on space take-up. Landlords pushed vacant spaces in the market causing a slight decrease in rent. Capital value stood still in particular quality assets. There was a lack of open market transactions in Q4 to adequately assess the impact, but we are of the view that rising interest rate and high inflation made little impact as many players are with low leverage. As a result, a further drop in yield was seen for Q4 in a softening rental market.  

Retail Sector
  • Transaction activity remained low in Australia in Q4 with transaction volumes likely to return once vendor and purchaser pricing expectations realign.
  • China property market had a quiet quarter due to the covid curb. The reopening of the country’s border from 8 January 2023 could boost growth prospects for China’s economy. It is a common expectation for a rebound in all industry sectors, in particular to retail and F&B consumptions. Prices and rents are expected to rise and sooner returning to the pre-epidemic level.
Industrial Sector
  • In Australia, most market stakeholders were cautious on purchasing in virtue of uncertainty on when interest rates would stop rising and at what level it would settle at in the short to medium term.  Prime assets are relatively resilient as rent continues to grow with a lack of superior real estate tactical capital allocation alternatives in the market. All in all, industrial property remains attractive due to continued rental growth, and stable and predictable net effective cash flows.
  • The industrial/warehousing segment is still resilient in Bengaluru. Third party logistics (3PL) players and automobile companies are looking for investment and expansion opportunities. This increase in demand drove value to rise and led to a marginal decrease in the cap rate.
  • In Hong Kong, despite its resilience and tight vacancy, imports and exports have decreased over the year and there was increasing concern on global economic downturn which resulted in a slight increase in cap rate.

1 Colliers data.

Download the latest APAC Cap Rates Snapshot | Q4 2022 below. For more real estate advisory insights across Asia Pacific, reach out to our experts CK LauDwight HillierKane Sweetman.

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Asia Pacific Cap Rates Snapshot | Q4 2022

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Related Experts
Hong Kong SAR China

CK Lau

Managing Director | Hong Kong & Managing Director | Asia CVAS

Managing Director's Office | Hong Kong

Hong Kong

CK Lau is the Managing Director | Hong Kong and also leads the Valuation & Advisory Services business as Managing Director | Asia.  He has over 30 years’ property experience in valuation, real estate consultancy and investment sales in Hong Kong, mainland China and the Asian region. 

His expertise includes development consultancy; government lease modification application and premium negotiations; investment and development sites sales; litigation valuation advice and expert witness in the High Court/Lands Tribunal/arbitration; portfolio valuations; REIT property advice; rental determination; and valuation due diligence services.

He writes regularly on topics relating to land use and development in Hong Kong since 2010. His collection of over 200 articles in the Hong Kong Economic Journal and other publications can be viewed through the following link:

CK is also a member in the following publications:

• “The HKIS Valuation Standards 2017 & 2020”

• “HKIS Guidance Notes on Valuation of Development Land” published in 2016

• “Surveyors acting as experts in commercial rent determinations” Joint guidance note Hong Kong prepared by the HKIS and RICS Hong Kong” 1st edition 2015


View expert

Dwight Hillier

Managing Director | Valuation & Advisory Services, Strategic Advisory & Healthcare & Retirement Living

Valuation & Advisory Services


I am responsible for the oversight and management of Valuation & Advisory Services; Strategic Advisory & Healthcare & Retirement Living  businesses in Australia.  Ensuring Colliers remains best in class providers in their respective markets. 

Managing Director, Valuation & Advisory Services 2013 - Present
National Director, CBD Commercial Valuation, Sydney CBD Office 2006 - 2013
State Director, Consultancy and Valuation, Sydney CBD Office 2003 - 2006
Associate Director, Sydney CBD Office 2002 - 2003
Senior Valuer, Sydney CBD Office 1998 - 1999
Valuer, Sydney West Office 1995 – 1998


Some of the more prominent clients that I regularly undertake national valuation appointments from include The GPT Group, AMP Capital Investors, DEXUS, Brookfield, and Lendlease.

Some of my more recent valuation instructions of Premium and A grade commercial office assets undertaken are as follows:-

‘Governor Phillip’ & ‘Governor Macquarie Towers’, 1 Farrer Place, Sydney
‘RBS Tower @ Aurora Place’, 88 Phillip Street, Sydney
‘Darling Park’, 201 Sussex Street, Sydney
‘Grosvenor Place’, 225 George Street, Sydney
1 Bligh Street, Sydney
120 Collins Street, Melbourne
530 Collins Street, Melbourne
8 Exhibition Street, Melbourne
‘Bourke Place’, 600 Bourke Street, Melbourne
One One One Eagle Street, Brisbane
1 William Street, Brisbane
Central Plaza I, II & III, Brisbane
‘Bankwest Tower’, 108 St Georges Terrace, Perth
‘Brookfield Place', 125 St Georges Terrace, Perth
‘Ernst & Young Centre’, 12 Mounts Bay Road, Perth


Prior to joining Colliers, I worked within the Research Department of the Property Council of Australia (PCA), then with a boutique firm of Valuers & Land Economists, where I was involved in the valuation of residential property predominantly for first mortgage security purposes, as well as commercial and retail rental advice.

View expert
New Zealand

Kane Sweetman

National Director

Valuation & Advisory Services

Auckland CBD

Kane has over 25 years of experience in the New Zealand, Australian and UK real estate sector.

Kane’s experience is truly global having provided valuation and advisory services throughout the Pacific along with various pan-European and pan-Asian portfolio valuation assignments.  In the UK he was directly involved in some of the largest development and land transactions including support for a corporate acquisition by US logistics giant Prologis and the provision of  feasibility studies for the development of London’s Stratford regeneration, which included Westfield Stratford and the surrounds. Kane specialised in retail valuations while in Sydney and valued some of Australia’s largest Shopping Centres.  Since returning to New Zealand in 2012, he has focused on Auckland’s CBD Office market along with mixed use and residential development valuations. 

Kane is a past member of the Auckland Branch committee of the NZIV and was the Deputy Chairman for the New South Wales RICS board between 2009 and 2011. He is a RICS Assessor and has been part of the Oceania Valuation Standards Board along with being Chairman of RICS New Zealand between 2014 and 2020.  In 2011 Kane was invited to become a Fellow of the RICS for his contributions to the Institution and the property profession.  He is currently a member of the PCNZ National Advisory Group.

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