RCA Insights

Asia Pacific Volume Hits High in 2017, Hong Kong Leaps, RCA Report Shows

By on February 7th, 2018

Acquisitions of income-producing assets reached an all-time high in Asia Pacific in 2017, buoyed by growth in Hong Kong, Singapore and South Korea, the latest edition of Asia Pacific Capital Trends shows. Hong Kong became the largest market in the region, usurping Tokyo.

Investment activity in Hong Kong broke records in 2017. Acquisitions of income-producing assets and development site sales touched new highs, while commercial property price growth outpaced all the market’s global peers.

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Hong Kong-based investors ratcheted up the rate of their cross-border acquisitions in Asia Pacific in 2017, while players from China trimmed their buying.

Investors faced a fully-priced, highly competitive environment throughout Asia Pacific during the year. Property yields hovered at historic lows in markets such as Japan, South Korea and Hong Kong, or compressed to new lows, as in Australia and Singapore.

To source suitable assets investors turned to the industrial and apartment sectors. Activity in the office and retail sectors was flat compared with 2016. Sales of Asia Pacific development sites, which are concentrated in China, rocketed to a new record.

If you are a current RCA subscriber, log into your account to download the 2017 Year in Review edition of Asia Pacific Capital Trends.