This can be attributed to the rise in activity in Australia, China, and Japan
According to Asia Pacific Capital Tracker 4Q21, real estate investments in the Asia Pacific have hit pre-pandemic levels. This can be attributed to the rise in activity in Australia, China, and Japan.
With volumes reaching USD35 billion in 2021, which is 170 percent greater than the previous year, Australia was the region’s top draw for investment. Throughout the year, a record high of USD9.3 billion in transactions drove activity, which was accelerated by a boom in logistics platform deals. Investments in office space and retail have also risen.
China’s transactions, driven by logistics and data centres, increased to USD39 billion in 2021 while direct investment into Japan real estate reached USD41 billion for the year.
The office market continued to show indications of recovery, with investors deploying USD74 billion capital. As rents and occupancies stabilize and investors focus on quality, health, and safety when investing in Grade A buildings, JLL expects interest in offices to climb by between 20 percent and 30p percent in 2022.
In 2021, a rebound in consumer spending sparked increased interest in regional retail assets. Retail sales increased by 67 percent year over year, reaching a total of USD36 billion, as investors were encouraged by consumer spending patterns and attractive rates.
Hotels in APAC, for example, are expected to receive more than USD9 billion in investments this year. This is a 30 percent increase from last year. The reason for this influx is that countries are easing their pandemic restrictions, which is reinstating confidence in the hospitality sector.
The sector took the brunt of the damage when countries closed their borders to stop the virus from spreading, Bangkok Post noted.
In an emailed statement from Roddy Allan, chief research officer, Asia Pacific, JLL, he shared that real estate investment in APAC this year will not be without its share of risks. It will, however, definitely pose a myriad of opportunities for investors through ongoing urbanisation, increasing prosperity and a growing middle class, and accelerating e-commerce.
The Property Report editors wrote this article. For more information, email: [email protected].
A formidable force: Plus Architecture showcases knack in smart, usable design
The firm has established itself throughout Australasia by deploying its design philosophy
Why Vietnam remains upwardly mobile, despite pandemic
Vietnam has been propelled into the big league of Asian nations: a fact reflected in its hyper-driven real estate market
The rise of Lombok’s first Gran Meliá resort
Gran Meliá Lombok makes the most of its paradisiacal site in the island’s coastal hills
Setting the pace with Economist William Thomas
Marathon runner and director of The Economist Corporate Network in Southeast Asia William Thomas is thinking strategically about the future of the region’s cities