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Cross-border commercial real estate investment in Asia-Pacific

Author

Listed:
  • Amanda Liu
  • Ilhyock Shim
  • Vladyslav Sushko

Abstract

Cross-border investment in Asia-Pacific commercial real estate (CRE) has increased since the Great Financial Crisis. Amid low interest rates and ample liquidity, financial investors have sought higher returns from illiquid CRE assets. The search for yield has been particularly evident among investors from outside the Asia-Pacific region, who are almost exclusively portfolio investors and may constitute the marginal investor base. In response to the Covid-19 shock, these investors have withdrawn from certain Asia-Pacific CRE sectors, and some have flocked to regional property markets perceived to be safe. Authorities have introduced various policies to mitigate the effect of the pandemic on CRE markets.

Suggested Citation

  • Amanda Liu & Ilhyock Shim & Vladyslav Sushko, 2020. "Cross-border commercial real estate investment in Asia-Pacific," BIS Quarterly Review, Bank for International Settlements, September.
    • Handle: RePEc:bis:bisqtr:2009b
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    References listed on IDEAS

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    5. Jimmy Shek & Ilhyock Shim & Hyun Song Shin, 2018. "Investor Redemptions and Fund Manager Sales of Emerging Market Bonds: How Are They Related? [Borrow cheap, buy high? The determinants of leverage and pricing in buyouts]," Review of Finance, European Finance Association, vol. 22(1), pages 207-241.
    6. David Ng & Ilhyock Shim & Jose Maria Vidal Pastor, 2019. "The role of different institutional investors in Asia-Pacific bond markets during the taper tantrum," BIS Papers chapters, in: Bank for International Settlements (ed.), Asia-Pacific fixed income markets: evolving structure, participation and pricing, volume 102, pages 113-142, Bank for International Settlements.
    7. Boris Hofmann & Ilhyock Shim & Hyun Song Shin, 2020. "Bond Risk Premia and The Exchange Rate," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(S2), pages 497-520, December.
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    10. Ilhyock Shim, 2012. "Discussant remarks on Andrew Felton and Joseph B Nichols’ paper Commercial real estate loan performance at failed US banks," BIS Papers chapters, in: Bank for International Settlements (ed.), Property markets and financial stability, volume 64, pages 25-28, Bank for International Settlements.
    11. Claudio Borio & Robert McCauley & Patrick McGuire, 2011. "Global credit and domestic credit booms," BIS Quarterly Review, Bank for International Settlements, September.
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    Cited by:

    1. Gregory W. Fuller, 2021. "The financialization of rented homes: continuity and change in housing financialization," Review of Evolutionary Political Economy, Springer, vol. 2(3), pages 551-570, December.
    2. Cheng, Ruijie & Rajan, Ramkishen S., 2022. "House price decoupling in East Asia and the Pacific: Trilemma versus dilemma revisited," International Review of Economics & Finance, Elsevier, vol. 79(C), pages 518-539.

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    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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