Asia Pacific Property Transaction Volumes up; Regional REITs Top USD100 billion
TheAsset.Com reports: Real estate transaction volumes in Asia-Pacific have continued the upward trend that started in early 2009, although volumes declined 23% quarter-on-quarter to USD21.4 billion in the first quarter of this year, according to a report produced by the Asia Pacific Real Estate Association (APREA), which promotes and represents the real estate sector on a regional basis, and commercial property research firm Real Capital Analytics (RCA).
CEO of APREA Peter Mitchell says, “All major markets in Asia experienced this fall in transaction volumes in the last quarter, with the exception of Japan where the volume actually increased by 122%. The majority of the transactions are coming from Japan, China, Hong Kong and Singapore.”
“However, the overall clear trend over the last two years is the substantial increase in transaction volumes in Asia and the increasing activity amongst domestic players and the correspondingly diminishing level of cross-border activity”.
Global transaction volumes dropped in the first quarter of the year by 31%. However, the total transaction volume was the second highest since the third quarter of 2008. Asia-Pacific transaction volumes contributed to 22.4% of the global total, up from 15% recorded in the fourth quarter of 2010.
APREA also reports that market capitalization of the Asian REIT market (ex-Australia) has reached over $100 billion for the first time; REITs totaled USD101.1 billion as of April 29 this year.
All sectors in the region experienced a fall in transaction volume, except for residential apartments which saw an increase of 10%. According to the report, movements in Asia Pacific cap rates were mixed over the quarter with retail, office and apartment cap rates showing signs of easing. Both industrial and particularly hotel cap rates showed signs of tightening.
View the full article on TheAsset.Com: Asia Pacific Property Transaction Volumes up; Regional REITs Top USD100 billion
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Posted by: Matthew Stone