RCA Insights

Chart: Bounces in First Quarter Activity Across Asia Pacific

By 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.

deal volume as proportion of 2015-2019 Q1 average across APAC markets

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.

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APCT Q1'21 thumbnail

 

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Benjamin Chow

Head of Analytics, Asia
bchow@rcanalytics.com

Benjamin Chow is the Head of Analytics for Asia, based in RCA’s Singapore office and a lead author on Asia Pacific Capital Trends. His expertise spans both the commercial and residential real estate markets in Asia Pacific.