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Asia Pacific Cap Rates Snapshot | Q3 2021

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Colliers Valuation and Advisory - APAC Cap Rates Q3 2021

Cap rates for Australia sees more movement than other Asia countries, on heightened market activity.

In Q3 2021,  we noticed 10 of the 21 cities surveyed across Asia Pacific (APAC) saw quarter-on-quarter (QOQ) movements.

Australia markets experienced more cap rates movement and transactions in the previous quarter, especially in the industrial and logistics sector. More movement is expected in Asian cities once there is more clarity on the future financial situation of the Chinese property developer, Evergrande.

Key Highlights in Q3 2021:

  • The sharpest movements have been in Australia's industrial and logistics sector, where cap rates have fallen by up to 0.6 percentage point (pp) QOQ. This cap rate compression reflects very strong demand for this asset class both in Australia and globally.

  • In Seoul, logistics cap rates have likewise fallen 0.5pp to the low 4% range, reflecting demand for warehouse assets in a market which has been one of the top three investment centres in APAC so far in 2021. With ample liquidity and limited outbound investment opportunities, cap rates in South Korea may drop further, into the 3-4% range.

  • Cap rates have been broadly flat in Asia cities, including those in China, where it is still seems too early to assess the impact of the financial situation of property developer Evergrande as well as broader stresses in the residential sector on commercial property asset values.

Download the latest APAC Cap Rates | Q3 2021 below. For more real estate advisory insights across Asia Pacific, reach out to our experts CK Lau and Dwight Hillier.

Asia Pacific Cap Rates Snapshot | Q3 2021

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CK Lau

Managing Director | Hong Kong & Managing Director | Asia CVAS

Managing Director's Office | Hong Kong

Hong Kong

CK Lau is the Managing Director | Hong Kong and also leads the Valuation & Advisory Services business as Managing Director | Asia.  He has over 30 years’ property experience in valuation, real estate consultancy and investment sales in Hong Kong, mainland China 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:

CK is also a member in the following publications:

• “The HKIS Valuation Standards 2017 & 2020”

• “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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