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.