Property investors are getting interest rate jitters

by Dramelin 8:30 PM 0 comments

Asia`s property investors are pulling back from fresh investments as they keep a nervous eye on whether interest rates head higher, an investor survey from CBRE found.
Fewer property investors were intending to deploy more capital this year, with only 37 percent intending to buy more, down from 42 percent last year, the survey found.
Fewer property investors were worried about a global economic shock, down to 25 percent from 46 percent last year, but 14 percent were worried interest rates might rise faster than expected, up from 6 percent last year.
Whatever the timing of the hike, it`s likely to push up yields on U.
S.
Treasurys, suggesting a higher "risk-free rate" and making property yields look less attractive comparatively.
"Traditionally, investors were looking for capital appreciation, but this year, the investors are focused on the yield gap.