APAC property investment volumes to increase by a third in 2022

Private equity investors’ interest in offices will drive investment demand.

Real estate investment volumes in Asia Pacific are expected to grow by a third in 2022, according to Knight Frank’s 2021 Active Capital Report. 

Investment demand will mostly come from US investment managers and private equity interest in offices. Apart from the US, Singapore, Canada, UK and Germany are slated to become APAC’s top sources of capital. 

In total, Knight Frank says the APAC office sector is forecast to attract over half of inbound investment into the region, the most popular locations being Greater China, Japan and Australia. Industrial will be the second most invested sector in 2022. Despite the challenges, retail will remain third for investments in the region.

For outbound investment, the US will be the favoured destination for APAC buyers, driven by the opportunity for scale across sectors. For example, Singaporean Government-linked companies acquiring platforms in the multifamily and data centre sectors.

There is also predicted to be a big increase in Asia-Pacific capital deployed into the UK as borders re-open and business travel can resume. Offices in the UK and gateway cities in Europe will remain in strong demand, as will pan-European logistics.

Neil Brookes, Head of Global Capital Markets at Knight Frank, commented: “The results from this year’s report are welcome sign of the continuing recovery in the region, linked to the resurgence of global cross-border investment into real estate.

“Indeed, as the world moves into the next phase of living with the pandemic, we could see a roaring 20’s effect for real estate in 2022.

“Thanks to the latest AI and machine learning technology, this year we have a much deeper dive on the likely trends emerging on where, what and how capital will be invested in the year ahead. As such, it provides a timely and actionable set of insights to help investors navigate the post-pandemic global real estate market, allowing them to stay one step ahead.”


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.