Led by a flood of capital into China’s property markets – especially in the sale of development rights - investment activity in the Asia Pacific region accelerated significantly in September. While investors plowed approximately $25.8 billion into property acquisitions during the month, China attracted the lion’s share of the deal volume with $21.6 billion, or 84% of the total.
In China, Beijing and Shanghai are the primary targets for acquisitions and development. Through the first nine months of 2009, Beijing notched deal volume of $13.5 billion and Shanghai recorded $13.1 billion, representing 17% and 16%, respectively, of the country’s $81.1 billion total through the third quarter. China’s 2009 year-to-date figure is 59% above the 2008 total, and, if the current pace continues, the year-end figure could shatter the 2007 12-month total of $105.8 billion.
Investors also have recently elevated their activity in Hong Kong. More than $1.5 billion was invested in September, marking the third straight month that deal volume topped the billion-dollar mark there. In many of Asia Pacific’s other major markets, investment activity remains muted. Japan’s year-to-date 2009 volume, for example, trails the equivalent 2008 figure by 58%, while activity levels in Singapore and India are off 77% and 54%, respectively.
The month’s largest deals were development site acquisitions in China. Developer Shanghai Greenland Group topped the list with its purchase from the Chinese government of a residential site in Shanghai for more than $1 billion. Some of the month’s notable deals involving existing properties included the sale of the Westin Guangzhou and Skyfame Tower in Guangzhou, China, for approximately $161 million, and the sale of the Tong Yang Investment Bank Building in Seoul for approximately $136 million.
| | |
|
2009 thru Sept |
2008 |
Grand Total |
| |
Country |
Metros |
$ mil |
# of Props |
$ mil |
# of Props |
$ mil |
# of Props |
| Asia |
China | Beijing |
$13,505 | 141 | $15,170 | 134 |
$28,675 | 275 |
| Shanghai | $13,139 |
101 | $7,965 | 84 | $21,104 | 185 |
| Hangzhou | $5,632 | 61 |
$4,919 | 59 | $10,551 | 120 |
| Tianjin | $3,777 | 67 |
$5,896 | 87 | $9,673 | 154 |
| Chengdu | $2,456 | 49 |
$1,358 | 14 | $3,814 | 63 |
| Chongqing | $3,594 | 47 |
$1,542 | 28 | $5,136 | 75 |
| Guangzhou | $2,898 | 39 |
$1,461 | 18 | $4,359 | 57 |
| Foshan | $1,997 | 24 |
$683 | 13 | $2,680 | 37 |
| Nanjing | $2,066 | 32 |
$1,795 | 23 | $3,861 | 55 |
| Xiamen | $2,366 | 26 |
$763 | 18 | $3,130 | 44 |
| Wuhan | $1,221 | 14 |
$435 | 8 | $1,656 | 22 |
| China Other | $28,431 |
545 | $23,379 | 534 | $51,810 | 1079 |
| Hong Kong |
Hong Kong | $5,855 | 199 | $8,836 |
204 | $14,691 | 403 |
| India | India all |
$2,091 | 25 | $5,330 | 94 | $7,421 |
119 |
| Japan |
Tokyo | $12,804 | 205 | $29,047 |
449 | $41,851 | 654 |
| Osaka | $1,603 | 22 |
$5,569 | 79 | $7,172 | 101 |
| Japan Other | $728 | 25 |
$6,114 | 145 | $6,842 | 170 |
| Malaysia |
Kuala Lumpur | $370 | 10 | $3,062 |
49 | $3,431 | 59 |
| Malaysia other | $322 |
4 | $894 | 23 | $1,217 | 27 |
| Singapore |
Singapore, all | $2,149 | 42 |
$9,426 | 120 | $11,575 | 162 |
| South Korea |
Seoul | $3,888 | 62 | $7,412 |
91 | $11,299 | 153 |
| South Korea other | $446 |
19 | $2,832 | 68 | $3,279 | 87 |
| Taiwan |
Taiwan, all | $3,067 | 61 |
$4,594 | 93 | $7,661 | 154 |
| Asia Other |
Asia other | $962 | 14 | $4,664 |
113 | $5,626 | 127 |
| Total | $115,369 |
1834 | $153,143 | 2548 | $268,512 |
4382 |
| Australia |
Australia | Sydney |
$797 | 34 | $2,474 | 62 | $3,271 |
96 |
| Melbourne | $989 | 35 |
$1,826 | 56 | $2,815 | 91 |
| Brisbane | $873 | 28 |
$1,477 | 46 | $2,350 | 74 |
| Perth | $347 | 9 |
$922 | 36 | $1,269 | 45 |
| Australia other | $1,616 |
53 | $1,977 | 61 | $3,594 | 114 |
| New Zealand |
New Zealand all | $361 | 17 |
$565 | 39 | $926 | 56 |
| Total | $4,982 |
176 | $9,242 | 300 | $14,224 | 476 |
| Grand Total |
$120,351 | 2010 | $162,385 | 2848 |
$282,736 | 4858 |