APAC commercial real estate investment returns to pre-COVID volumes – advice
HONG KONG, Aug.5 (Reuters) – Real estate consultancy CBRE said on Thursday that the volume of investment in commercial real estate in Asia-Pacific jumped 99% to $ 41 billion in the second quarter compared to it a year ago, reverting to pre-pandemic levels, driven by large transactions.
Transactions above $ 1 billion accounted for 25% of the region’s total volume, he said, while cross-border transactions grew 65% in the quarter.
India posted the strongest growth at 354%, followed by Hong Kong and Australia, which increased by 270% and 196% respectively. Mainland China grew 117%.
In terms of asset class, commercial investment represented 31% of the region’s total volume, while industrial properties remained in high demand, with net take-up in warehousing reaching the highest total on record in the first half of the year. in the main markets.
Consulting firm JLL said separately on Thursday that investment in logistics and industrial real estate in Asia-Pacific jumped 215% in the second quarter from a year earlier to $ 15 billion, thanks to the expansion e-commerce, relative yield spreads and investors’ desire to diversify into more resilient sectors. asset classes.
In the first six months, China, Australia and South Korea accounted for 69% of the total real estate investment volume, which increased 39% to $ 83.5 billion, while activity in Japan was lower due to disruption from the pandemic, JLL said.
“We expect activity to continue in the second half of 2021 as investors turn to portfolio transactions, corporate sales and leasebacks, and seek greater diversification in sectors such as logistics and industry, life sciences and multi-family, ”said Stuart Crow, CEO of Capital Markets at JLL. in Asia-Pacific. (Reporting by Clare Jim edited by Mark Potter)