Property investment in Asia-Pacific likely to hit record next year as economic recovery from coronavirus boosts confidence, analysts say

The region will see investment volumes grow by a third, largely driven by a re-emergence of US investment managers’ and private equity firms’ appetite for offices, Knight Frank says

Transaction volumes surpassed US$160 billion in the first three quarters, according to Colliers, significantly higher than last year and up 14 per cent from the previous record in 2019

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Office buildings in central Tokyo. US investment managers and private equity firms are regaining their appetite for office properties in the Asia-Pacific, says Knight Frank.Photo: EPA

Published: 8:30am, 14 Oct 2021Updated: 8:38am, 14 Oct 2021

Property investment activity in Asia-Pacific is poised to hit a record high next year as confidence returns amid an economic recovery from the Covid-19 pandemic, according to Knight Frank.

The region will see investment volumes grow by a third, largely driven by a re-emergence of US investment managers’ and private equity firms’ appetite for offices, said the international real estate consultant.

In its Active Capital Report, which tracks trends in international real estate investment, Knight Frank said the United States, the UK, Germany, France and the Netherlands will be the top destinations for cross-border investment in 2022.

“A resurgence of investment flows into real estate, hitting record pre-pandemic levels in key sectors including offices, logistics and residential, signals a marked return of investor confidence,” said the report released on Wednesday, which tracked fund flows in 286 cities.

Transaction volumes across the Asia-Pacific have surpassed US$160 billion in the first three quarters of the year (including contracted deals), according to Colliers. This was significantly higher than last year and up 14 per cent from the previous record in 2019.

“We are on track for a record year in 2021,” said Terence Tang, managing director of capital markets and investment services for Asia at Colliers.