APAC property investment soars 30% to a staggering US$125b in the first nine months of 2021

Investments in Q3 alone increased 10% to US$39.5b.

A recent report by JLL reveals that Asia Pacific real estate investment volumes surged 30% to US$125 billion in the first nine months of 2019, compared to the same period in 2020. This represents a 6% decline from 2019 levels. Investor favourites this year were income-resilient assets such as the office and logistics sectors.

Here’s more from JLL:

 Analysis in JLL’s Capital Tracker Q32021 showed that third quarter investment in Asia Pacific was US$39.5 billion, a 10% increase year-on-year. However, transactions were down by 23% quarter-on-quarter as several regional economies were impacted by the resurgence of Covid-19 and subsequent restrictions limiting activity. 

“Despite ongoing unpredictability, our interactions with clients reaffirm both the attractiveness and resilience of the Asia Pacific commercial real estate sector. Throughout 2021, investor interest in the region has remained extremely high as capital becomes more active and volumes approach pre-pandemic levels across the region, which we expect will continue into the fourth quarter,” says Stuart Crow, CEO, Capital Markets, Asia Pacific, JLL. 

In the third quarter of 2021, office investments continued to recover, making up 55% of deals, supported by stabilising rents and occupancy levels. In tandem, logistics transactions continue to climb, with investments in the past 12 months reaching US$43 billion, compared to US$25 billion in 2019. JLL forecasts logistics investments to double to US$50-60 billion between 2023-25, driven by favourable demand drivers, attractive yield spreads and a desire for diversification.

Retail and hotel investments have been soft as economic recoveries across the region were delayed due to Covid-19 outbreaks. Hotel investment volumes are set to cross US$7 billion for the full year 2021, growing to US$9 billion in 2022, JLL estimates.

By geography, activities in Australia doubled year-on-year, due to large industrial and office sales, recording over US$6.3 billion in direct investments for the quarter. Japan at US$11.8 billion (up 51% year-on-year) and South Korea at US$7 billion (up 1% year-on-year) were supported by activity from domestic REITs and investment managers. In contrast, investment activities in China ended the quarter at approximately US$7.3 billion (16% down year-on-year), while Singapore dropped to US$1.1 billion dollars (64% down year-on-year) as sentiment was dampened by Covid-19 restrictions.

“We expect portfolio reallocation to remain a major theme into 2022 with investors facing stiff competition for income-resilient assets including office and logistics, as well as in more niche sectors such as self-storage, residential and data centres. Overall, investor sentiment remains positive and we maintain our view that investment volumes will rise 15 to 20% in 2021 with further recovery expected in 2022,” says Regina Lim, Head of Capital Markets Research, Asia Pacific, JLL. 

Join Realestate Asia community
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!

But this is only due to the major sale of Sunworld Dynasty in Q3 2020.
Sales volume reached 1,387 in the first three quarters of 2021.
There are currently 315 hotels with 86,967 keys.
Supply will hit record highs of over 5m sqm this year, with more supply slated until 2023.
There were a total of eight hotel investment transactions during the quarter.
They are mostly in the CBD and CBD Fringe submarkets.
A record 6,000 seats in flex spaces were absorbed in Q3 2021 alone.
Blame it on supply chain disruptions and labour shortages amidst the pandemic.
Damaged land could help address the lack of developable land in Seoul’s Capital Area.
Tenants in Kowloon are favouring lease renewals over relocations.
Full-year investment turnover is predicted to grow by up to 20%.
Transactions already increased by a massive 131.4% y-o-y in the first nine months of 2021.