APAC property investment volume hits US$68b in H1 2021

This is already 63% of full-year 2020 levels.

According to CBRE, commercial real estate investment activity picked up significantly in H1 2021 as investors moved to deploy capital after a quiet 2020. Investment volume reached US$68 billion during the period, equivalent to 63% of full-year 2020 turnover, with acquisitions led by real estate funds, institutional investors including pension funds, insurance companies, sovereign wealth funds and  REITs. Despite COVID-19 variants, full-year investment turnover is expected to be 15-20% — up from a forecast of 5-10% at the beginning of the year.

“Bargain hunting investors may be disappointed as increased purchasing activity makes discounted assets harder to find. With office leasing demand continuing to improve, rents expected to stabilise in 2022 and return to growth in 2023, investors can consider counter- cyclical opportunities in the office, retail and hotel sectors, “ said Dr. Henry Chin, CBRE’s Global Head of Investor Thought Leadership and Head of Research, Asia Pacific.

Here’s more from CBRE:

Industrial and logistics assets remained keenly sought after by investors. The sector accounted for 23% of total turnover in H1 2021, well above 2019’s 12%. Australia, mainland China, Japan and Korea remained the key focus for buyers of industrial property, while the period also saw a growing appetite for logistics assets in Southeast Asia and India. 

Investors displayed strong demand for stabilised office buildings and business parks with life sciences and technology tenants, many of which have performed resiliently since the onset of the pandemic. While most buyers retain a cautious stance towards retail, investors possessing retail management expertise are capitalising on weaker competition to add to their portfolios. The strong recovery in investment activity in H1 2021 has led CBRE to revise up its fullyear investment turnover forecast by 15-20%.