By Benjamin Chow on May 10th, 2021
There are signs of recovery underway for a majority of commercial real estate markets in the Asia Pacific region. In the chart below, we plot deal activity for Asia Pacific’s top eight real estate markets in the first quarters of 2021 and 2020, expressed as a percentage of the average of the previous five years.
The four markets where deal activity took a hit in early 2020 all clawed back some of their lost ground in the first quarter of this year. Singapore’s bounceback stands out: Q1 2021 volume matched historic average first quarter levels. Australia too came back near to trend. (This analysis looks at income-producing property deals $10 million and greater.) China and Hong Kong, meanwhile, still remain quite some way off the historic average but surpassed deal activity levels of Q1 2020.
Japan, South Korea and India were markets that posted gains in activity before the pandemic really hit home last year. Investment momentum continued throughout the rest of the year for both South Korea and India, which ended 2020 at record levels despite the crisis. Japan’s drop seen in Q1 2021 is likely to revise as more deal data emerges.
That leaves us with Taiwan, which started off this year with the strongest growth of all the major markets. First quarter volume has now increased for four consecutive years. The Q1 2021 tally of $1.3 billion represents the highest ever level, almost 50% higher than the previous record in 2010.
© Real Capital Analytics
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