Investor appetite for Asia Pacific real estate remains robust. An overwhelming 92% of respondents indicate that their investment activity in 2018 will be the same or greater compared to 2017.

Investor demand for real estate is being driven by the objective of securing stable income streams and asset class diversification.

The high price of core assets and search for higher returns continues to drive investors towards core-plus/good secondary - which entails investing in prime assets in non-core areas, or non-prime assets in core areas - and value-added assets. This marks the first time that value-added overtook prime core as the most preferred asset.

As investors shift towards core-plus and value-added strategies, the focus is broadening away from the traditionally preferred markets of Shanghai, Sydney and Tokyo. Several cities are attracting attention, led by Singapore, Melbourne, Brisbane and regional cities in China and Japan.

Other key trends include investors reducing their return expectations; a more thematic sector focus; stronger interest in co-working; and the continued slowdown in Chinese outbound investment.