Asia-Pacific commercial property investment back to pre-Covid volumes: consultancy

[HONG KONG] Property consultancy CBRE said on Thursday the volume of investments in commercial real estate in the Asia-Pacific leapt 99 per cent to US$41 billion in the second quarter from a year ago, returning to pre-pandemic levels, led by big-ticket transactions.

Deals larger than US$1 billion accounted for 25 per cent of the region's total volume, it said, while cross-border transactions rose 65 per cent in the quarter.

India posted the largest growth at 354 per cent, followed by Hong Kong and Australia, which rose 270 per cent and 196 per cent, respectively. Mainland China increased 117 per cent.

In terms of asset class, retail investment accounted for 31 per cent of total volume in the region, while industrial properties remained highly sought after, with warehousing net take-up reaching the highest first half total on record in major markets.

Consultancy JLL said separately on Thursday that investment in logistics and industrial real estate in the Asia-Pacific surged 215 per cent in the second quarter from a year earlier to US$15 billion, driven by e-commerce expansion, relative yield spreads and investors' desire to diversify into more resilient asset classes.

In the first six months, China, Australia and South Korea comprised 69 per cent of the total real estate investment volume, which grew 39 per cent to US$83.5 billion, while activity in Japan was weaker due to disruptions from the pandemic, JLL said.

"We expect further activity in the second half of 2021 as investors look to portfolio deals, corporate sale and leasebacks, and seek more diversification into sectors like logistics and industrial, life sciences and multifamily," said Stuart Crow, CEO of Capital Markets at JLL in Asia Pacific.

REUTERS