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Asia Pacific Cap Rates Snapshot | Q4 2021

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Colliers Valuation and Advisory - APAC Cap Rates Q3 2021

The logistics sector in Asia Pacific remains the most active, with more cap rate movements expected in the coming months.


Cap rates were generally stable in Q4 2021 across Asia Pacific (APAC), with three of the 21 cities surveyed across APAC seeing quarter-on-quarter movements.

Industrial remained relatively active, while retail still hinged on the development of COVID-19 in most cities. The office sector remained generally stable across all markets except for Auckland.

Key Highlights in Q4 2021:


  • The office sector in Seoul was generally flat. Despite concerns about rising interest rates when investors make their investment decisions, Seoul recorded the highest value office transaction of the year in Q4. On the other hand, we saw a decrease in cap rates in the industrial sector while values kept rising in Seoul. Demand stayed strong for industrial in Seoul, particularly in logistics, with less new supply in the pipeline as development licenses and permits are getting harder to obtain.

  • In Auckland, low interest rates and high levels of market activity have resulted in the compression of industrial cap rates. Commercial office yields tightened slightly, while retail yields have remained flat as investors continue to take a more cautious approach.

  • Logistics remained favourable with many investors, reflecting the strong demand and a consequence of the lingering effects of COVID-19 in many markets. We may see movement in more markets in the coming quarters.

Download the latest APAC Cap Rates Snapshot | Q4 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 | Q4 2021

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Related Experts
Hong Kong SAR China

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:

https://lauchunkong.wordpress.com

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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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. 

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, 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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