By Simon Mallinson on November 5th, 2020
Global sales of commercial property sank sharply in the third quarter of 2020 compared to a year ago, with deal activity across all the major property types slumping, the latest edition of Global Capital Trends shows. Deal volume fell 52% year-over-year and came in just a shade higher than the level seen in the second quarter of 2020, which was the lowest quarterly total since 2012.
Practical impediments to dealmaking, uncertainty about the future for some property types, and the fragile economic picture took their toll on activity. Relatively, sales volume involving individual assets held up best in the quarter, though the total dropped 44% year-over-year. Sales of portfolios sank 64% and entity-level sales slumped 84%, with no M&A-type activity seen in the Americas region for the second quarter in a row.
For the year so far, most markets are falling far short of activity seen in 2019. One exception is South Korea, as shown in the new edition of Asia Pacific Capital Trends, also released this week. Activity jumped in the third quarter of the year, with commercial property sales volume eclipsing that of both China and Japan.
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