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APAC Cap Rates | Q1 2021

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Cap rates across the office, retail and industrial sectors showed markedly more movement last quarter.


Cap rates in many major industrial markets across Asia Pacific moved in a downward trajectory, including cities in China, India, Japan, Australia and New Zealand.

This underscores a greater pull by investors towards logistics assets as a safe haven amid ongoing uncertainties.

Key Highlights in Q1 2021:

  • In Australia, all markets studied showed a dip in industrial cap rates on the back of stronger investor appeal brought about by longer lease terms. Stronger investor demand is also bringing industrial cap rates down in Tokyo, Shanghai and Beijing. In Auckland, vacancy rates are at about 2%.

  • Retail cap rates across Asia Pacific remained mostly flat with a few exceptions – Beijing, Shanghai, Mumbai, Melbourne, Sydney and Brisbane. The higher income risk from this sector has hampered demand for this asset class.

  • China and India saw office cap rates trend upward due to several reasons, including softening demand in Beijing and Bengaluru. 

Download the latest APAC Cap Rates | Q1 2020 below. For more real estate advisory insights across Asia Pacific, reach out to our experts CK Lau and Dwight Hillier.


APAC Cap Rates | Q1 2021

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CK Lau

Managing Director | Asia

Valuation & Advisory Services

Hong Kong

CK Lau is the Managing Director of Colliers International responsible for valuation and advisory services in the Asian region.  He has over 30 years’ property experience in valuation, real estate consultancy and investment sales market in Hong Kong, the PRC and the Asian region. 

His expertise includes development consultancy; government lease modification application and premium negotiations; investment and development sites sales; litigation valuation advice and expert witness in the High Court/Lands Tribunal/arbitration; portfolio valuations; REIT property advice; rental determination; and valuation due diligence services.

He writes regularly on topics relating to land use and development in Hong Kong since 2010. His collection of over 200 articles in the Hong Kong Economic Journal and other publications can be viewed through the following link:

https://lauchunkong.wordpress.com

CK also participated as a member in the following publications:

• “The HKIS Valuation Standards 2017”

• “HKIS Guidance Notes on Valuation of Development Land” published in 2016

• “Surveyors acting as experts in commercial rent determinations” Joint guidance note Hong Kong prepared by the HKIS and RICS Hong Kong” 1st edition 2015

 

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