APREA-RCA Report Shows Asia-Pacific Commercial Property Rebound
Asian Investor reports: After a notable drop in Q2, transaction volumes in the Asia-Pacific region jumped 44% in the Q3 against a 15% rise globally. This upward movement is expected to continue given the amount of investible property in the region, according to a report by the Asia-Pacific Real Estate Association (APREA) and Real Capital Analytics (RCA). Members of APREA can download the full report here.
The third-quarter data on real estate transaction volumes worldwide reaffirms the view that Asia-Pacific is a global hot-spot. Transaction volumes increased to $20.8B there, following a second-quarter blip blamed on domestic cooling measures brought in by Beijing.
Global transaction activity also returned, rising 15% quarter-on-quarter to total $303B for the past 12 months – a 47% increase year-on-year. In the third quarter, Asia-Pacific accounted for 26% of global volume, up from 21% in Q2 but down on 29% in the first three months.
Lok So, APREA’s operations director based in Singapore asks “Do we see transactions in Asia continuing to rise? You would expect so. In terms of investible real estate in the world, it is almost a no-brainer that Asia will get the lion’s share of that, driven by China.” Australia commercial real estate investment has been significant in the last 12 months and the $3.8B recorded there in Q3 was the highest level since 2007.
The office property sector continued to lead transaction volumes in the third quarter with $9.9B, or 48% of the Asia-Pacific total. While the retail sector led the Q2 plunge, it helped drive the Q3 rebound in transactions with a 158% jump.
Notably, REITs and publicly-listed property firms continued to assert themselves as the top buyer group in the region in the third quarter, accounting for 37% of all known property transactions. By contrast, institutional buyers saw their share of transactions average only 11% over the last three quarters, compared to 28% over the previous twelve.
View the full article on Asian Investor: APREA-RCA Report Shows Asia-Pacific Commercial Property Rebound
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Posted by: Nina Turner