Real Estate

Direct investment in commercial property in Asia Pacific climbed 33% year over year in the third quarter, putting the region on course to have its best year ever in terms of transaction volumes. ايجار
According to a capital markets analysis from Jones Lang LaSalle, direct commercial property investment in Asia Pacific topped $30 billion in the third quarter, marking the region's third consecutive quarterly rise. At the end of the third quarter, investment activity for the year totaled $89.6 billion, up 25% from the same period previous year.
"Following yet another quarter of strong growth, we have raised our year-end prediction from $110 billion to $120 billion," said Stuart Crow, JLL's head of Asia Pacific capital markets, in the report. "If this amount is achieved, 2013 will be tied with 2007 as the most successful year in terms of transaction volumes."
The region's three largest markets — Japan, China, and Australia — contributed for 69 percent of the region's completed transactions last year, driving commercial investment growth.
Commercial real estate investments in Japan increased by 139 percent year on year in the third quarter, reaching $8.7 billion. China's investment activity increased significantly in the third quarter, hitting $7 billion, up 167 percent from the previous year.
Year-to-date, transaction volumes in China exceeded $16.6 billion, with considerable demand from offshore investors, according to the firm.
Despite a solid increase in commercial property investments, the region is seeing worldwide market consequences.
"We are starting to see caution regarding interest rates after the Federal Reserve's recent move to curtail its asset purchase program," said Dr Megan Walters, head of research for JLL's Asia Pacific capital markets. "Longer-dated bond yields have risen across the area, raising concerns about global rate direction and driving investors to factor interest rate increases into their purchase due diligence."
In Hong Kong, investment activity fell by 76 percent in the third quarter compared to the same period last year, as the market grappled with government cooling measures and interest rate fears. According to JLL, about $2 billion of Hong Kong-based capital was invested in other markets around the region in the third quarter.
Given the solid pipeline and improving investor mood, the business remains optimistic about the region's success in the remaining months of the year.
Mr. Crow stated, "The Asia Pacific commercial property markets continue to prosper on the strength of unwavering demand for direct real estate returns in the area." "We're seeing greater engagement from Asian pension and sovereign funds, as well as fresh sources of global capital allocating for the first time to Asian real estate."