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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.


2021 Q3 apac cap rates colliers_1024x972

Asia Pacific Cap Rates Snapshot | Q3 2021

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Related Experts
Hong Kong SAR, China

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 & 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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Australia

Dwight Hillier

Managing Director | Valuation & Advisory Services, Strategic Advisory & Healthcare & Retirement Living

Valuation & Advisory Services

Sydney

I am responsible for the oversight and management of Valuation & Advisory Services; Strategic Advisory & Healthcare & Retirement Living  businesses in Australia.  Ensuring Colliers remains best in class providers in their respective markets. These key sectors on a national basis are headed by the following people:

Jonathan Petsalis - Head of Office | Valuation & Advisory Services
Simon Andreatta – Head of Industrial | Valuation & Advisory Services
Andrew Johnston – Head of Retail | Valuation & Advisory Services
John Harrison - Head of Agribusiness | Valuation & Advisory Services
Phil Western - National Director | Government Property Services
Neil Murray - Head of Strategic Advisory
Shalain Singh - Head of Healthcare & Retirement Living

Colliers  is a full service provider of Global Valuation & Advisory Services.

COMPANY EXPERIENCE
Managing Director, Valuation & Advisory Services 2013 - Present
National Director, CBD Commercial Valuation, Sydney CBD Office 2006 - 2013
State Director, Consultancy and Valuation, Sydney CBD Office 2003 - 2006
Associate Director, Sydney CBD Office 2002 - 2003
Senior Valuer, Sydney CBD Office 1998 - 1999
Valuer, Sydney West Office 1995 – 1998

PROFESSIONAL ACCOMPLISHMENTS | OFFICE VALUATION & ADVISORY

Some of the more prominent clients that I regularly undertake national valuation appointments from include The GPT Group, AMP Capital Investors, DEXUS, Brookfield, and Lendlease.

Some of my more recent valuation instructions of Premium and A grade commercial office assets undertaken are as follows:-

‘Governor Phillip’ & ‘Governor Macquarie Towers’, 1 Farrer Place, Sydney
‘RBS Tower @ Aurora Place’, 88 Phillip Street, Sydney
‘Darling Park’, 201 Sussex Street, Sydney
‘Grosvenor Place’, 225 George Street, Sydney
1 Bligh Street, Sydney
120 Collins Street, Melbourne
530 Collins Street, Melbourne
8 Exhibition Street, Melbourne
‘Bourke Place’, 600 Bourke Street, Melbourne
One One One Eagle Street, Brisbane
1 William Street, Brisbane
Central Plaza I, II & III, Brisbane
‘Bankwest Tower’, 108 St Georges Terrace, Perth
‘Brookfield Place', 125 St Georges Terrace, Perth
‘Ernst & Young Centre’, 12 Mounts Bay Road, Perth

PRIOR EXPERIENCE

Prior to joining Colliers International, I worked within the Research Department of the Property Council of Australia (PCA), then with a boutique firm of Valuers & Land Economists, where I was involved in the valuation of residential property predominantly for first mortgage security purposes, as well as commercial and retail rental advice.

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