, Hong Kong

Hotel investment sales in Asia plummet 71.7% to US$1b in Q2

The most liquid markets were Japan and South Korea.

Following the significant retreat in investment sales in Q1 2020, Colliers notes the hospitality industry continues to witness a further drop in transactions in Q2 2020 to approximately US$1.0 billion, a decline of circa 56.8% and 71.7% quarterly and annually, respectively. This is unsurprising given the COVID-19 situation with investors waiting for improved economic activity or significant pricing adjustments before committing to transactions.

According to Colliers, the most liquid markets were Japan and South Korea while markets such as Hong Kong SAR, China and Taiwan saw little investment sales during the quarter. With international travel restrictions in place, domestic investors remain the dominant group in investment transactions.

While noting the comparatively lower investment sales during Q2 2020, investor interest has remained fairly firm against the backdrop of economic volatility and uncertainty. In the coming months, we expect investment activity to gain pace as investors move to take advantage of any opportunities that will emerge - although cautious sentiment and stricter underwriting remain key given the evolving situation.

For value-add investors and those looking to create a presence in the region’s key city and resort markets, this may be the right time to explore. With access to mainstream financing likely to be limited in the near term, cashed-up investors who can transact quickly will be in prime position.

Click here to download the Colliers Hotel Insights Q3 2020 report.

  

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Realestate Asia in your inbox

Taiwan commercial transaction volumes hit record highs in Q1

Total volumes surged 241% to USD1.5b during the quarter.

Are Thai property buyers finally ditching the ‘wait and see’ approach?

They are beginning to establish acquisition strategies for this year.

Don’t be fooled by Singapore retail sector’s improving demand indicators 

The sector’s recovery won’t start until 2022.

Philippine residential prices to inch up 1.5% in 2022

The pace of growth will likely hinge on a rebound in office leasing. 

APAC data centre demand to double in 3-5 years

Singapore, Hong Kong, Mumbai, Sydney, Seoul and Tokyo are promising markets, says Knight Frank.

Japan’s property investment market unfazed by ongoing lockdowns

There were 18 en-bloc transactions with a combined value of USD2.3b in Q1 2021.

Indonesian property sector to get a boost from these government incentives

These include a waiver of the 10% VAT on property sales under IDR2 billion.

These 3 properties bolstered Singapore’s impressive home sales in Q1

Over 42% of the 3,376 units sold during the quarter were from these properties.  

Korean office transaction volumes hit USD2.1b in Q1

There were 7 en-bloc transactions closed during the quarter.

Here’s why Melbourne’s office market will see more activity in Q2

Colliers expects increased market activity across assets higher up the risk curve. 

Contact me about the awards