Asia Pacific real estate investments went up by 26% in 2021

This can be attributed to the rise in activity in Australia, China, and Japan

The office market continued to show indications of recovery. Francesca Pianzola/Shutterstock

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.

More: This year’s APAC data centre market at a glance

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].