Dealmaking activity across Asia Pacific continued despite macroeconomic challenges, with investors banking on office and industrial assets for long-term value.
Major real estate markets across the Asia Pacific region had to contend with high inflation and rising interest rates, which impacted sentiment and slowed the momentum gained in the first half of the year. Nonetheless, these challenges were offset by the lifting of Covid-19-related restrictions on travel and work in most countries, which supported dealmaking and helped market participants adopt a cautiously optimistic view of the future.
Regional trends and key report highlights for Asia Pacific:
- In Australia, Melbourne and Sydney recorded transactions worth nearly USD1.5 billion as ongoing flight-to-quality continues to underpin recovering office fundamentals, particularly across the Prime end of the office sector.
- Major markets in China witnessed deals worth over USD4.79 billion, with transactions dominated by the office segment.
- Deals resumed in Hong Kong SAR despite Fed rate hikes, with transaction volumes jumped 133% quarter-on-quarter to USD5.27 million.
- Although the strong momentum in the first two quarters slowed amid various economic headwinds, year-to-date investment volumes in Singapore touched USD16.7 billion, or 85% of the total recorded in 2021.
- The real estate market in India enjoyed an upbeat quarter, with multiple segments in key Indian markets experiencing strong demand, and three en-bloc transactions worth USD500 million in Mumbai and the National Capital Region finalised.
- Japan witnessed the sale of an office building in Tokyo for a record-high price of over USD2.86 billion, and low rates and relaxing of border restrictions are expected to benefit real estate transactions.
- Investment activity continued in Korea, with total office transactions reaching USD2.2 billion as Seoul office real estate continues to power the Korean market.
- Taiwan remains a relatively safe investment destination, witnessing transactions worth over USD900 million.
Download the report below for more expert recommendations for real estate owners and investors across Asia Pacific, or contact our experts Chris Pilgrim, John Howald and John Marasco for key trends and opportunities across the Asia Pacific capital markets.