Real estate performance across much of the Asia Pacific region has been mixed. Amid mostly decelerating returns, Japan experienced a noticeable shift to the upside. Despite this deceleration, we expect 2013 to be a decent year, at least compared to Europe. Re-turns may be dampened somewhat in the first half of the year given the softness in the global economy, but we expect this to normalise or possibly perform above-trend by the second half of 2014. Acquisitions have become more challenging given modest cap rate compression in property markets, especially for prime assets. We maintain our view to-wards overweighting suburban retail and the logistics segment. We also maintain our view of an equal weighting for the office sector, but with a bias to the upside for Hong Kong, Singapore, and Tokyo.
Source : Deutsche Asset & Wealth management