RCA Insights

Asia Pacific Volume Touches Record, Report Shows

By on May 10th, 2018

Asia Pacific commercial real estate activity touched a record high at the start of 2018, bolstered by large single asset and platform deals spread across the region, the latest edition of Asia Pacific Capital Trends shows. The industrial sector surged.

The first quarter featured several notable megadeals. A Chinese consortium bought a global industrial portfolio from GLP and of this $6.3b was in China and Japan; in Tokyo the Shiba Park office building was purchased by a domestic joint venture for $1.2b; in Hong Kong, Link REIT sold 17 shopping centers for $2.9b to a consortium led by Gaw Capital; and, also in Hong Kong, China Create Capital partnered with China Taiping Insurance to acquire an office tower for approximately $1.3b.

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The industrial sector grew 51% year-over-year, based on 12-month rolling data. The office, retail and hotel sectors also registered year-over-year gains of more than 10%.

Hong Kong’s stellar 2017 performance continued into 2018, while in Australia activity increased after three years of declines. Across the region property yields are hovering at or near historic lows.

If you are a current RCA subscriber, log into your account to download the Q1’18 edition of Asia Pacific Capital Trends. To receive information about becoming an RCA client, contact us