Concrete Analysis | Property fund surge fuels investment in Asia-Pacific
Record capital for real estate and emergence of trophy assets see transactions in region rise 2 per cent in first half to US$56 billion
The Asia-Pacific real estate investment market has remained buoyant this year with strong activity seen up to this quarter.
Strong investor appetite was demonstrated by a buoyant fundraising market, a wave of bigger deals and the emergence of trophy assets on the market over the past six months.
While volatile Chinese equities and emerging market currencies have captured recent media headlines, more important for real estate investors are the continuing decline in global interest rates and a pickup in office leasing volumes across the region in the middle of the year.
JLL capital flow research showed regional investment volumes in the first half rose 2 per cent from a year ago to US$56 billion, with Japan and China accounting for half of the amount.
US dollar strength masked activity at the local level which is stronger than the headline growth rate, particularly in Japan, Australia and South Korea, where the greenback is 10 per cent to 20 per cent stronger than a year ago.
Asia-Pacific volumes would have been up almost 10 per cent in the first half, if exchange rates were fixed.