More than a decade since the global financial crisis, Asia Pacific real estate continuesto produce strong returns. But as the clock ticks down towards the end of the currentcycle, caution is increasingly embedded into investor strategies.This despite the fact that there is no clear consensus as to whether the market is near,at, or beyond its peak. In part, this is because of the heterogeneous nature of localmarkets. As one Singaporean developer observed: “The risk of a market downturn hasincreased significantly, but it’s market specific.” In addition, markets and sectors acrossthe Asia Pacific are often at different stages of their own cycles. Singapore, for example,has only now rebounded from a slump that bottomed around three years ago, whileother markets have been riding the same wave after six years or more. Finally, witheconomic growth continuing at a reasonable clip, interest rates remaining at near-recordlows, and with ever-increasing amounts of capital circulating around the region lookingfor an investment home, it is hard to see where the catalyst for the next recession isgoing to come from. In the words of one private-equity investor: “If you compare whereAsia is today versus where the developed markets are, cyclically we feel like we’re in abetter position.”