This article is from the Australian Property Journal archive
AUSTRALIA has again topped the quarterly rankings for commercial real estate investment transactions in Asia Pacific, while political unrest in Hong Kong has cut volumes down by a third.
Trade tensions and global macroeconomic uncertainty made an impact across the region, according to the latest Asia Pacific Capital Trends report from Real Capital Analytics. Total Asia Pacific real estate transactions were down 9% year-on-year in the September quarter at US$30.8 billion.
Over the first nine months China, Japan and South Korea all posted declines, while Australia was flat.
Despite a 12% year-on-year decline, Australia’s third quarter transaction total of US$6 billion was the region’s highest, followed by China, up 25% to US$5.7 billion, Japan (down 26% to US$5.3 billion), and South Korea (down 10% to US$4.9 billion).
RCA managing director for Asia Pacific, David Green-Morgan said Australia performed “relatively well” the quarter.
“It saw large and smaller deals, and the flow of international capital remains strong. Activity is steady, and it will be a good year all round.”
Year-to-date volumes are steady at US$18.5 billion, up 1% year-on-year.
“Bolstered by renewed confidence following the national election and several RBA cash rate cuts, domestic investors remained active in Q3 despite a broader pullback from cross-border groups.”
Hong Kong was fifth with US$2.7 billion, but investment volumes have tumbles by 32%. Green-Morgan said this was largely due to reduced activity by domestic investors after the political protests erupted in June.
“The demonstrations only exacerbated a softening trend though following an exceptionally strong 2018,” he said. Year-to-date volumes are down 41% to US$13.9 billion.
Singapore has been the region’s standout performer, with transaction volumes up by 62% to US$2.6 billion during the quarter and by 69% in year-to-date terms to US $7.5 billion.
Volumes in India skyrocketed by 80% to US $1.9 billion through the quarter, but are down by 12% across 2019, at US $3.7 billion.
Japan leads transaction volumes over the first three quarters, at US$24.3 billion, followed by China (US$21.7 billion), Australia, and then South Korea (down 14% to US14.9 billion), and Hong Kong.
