Hong Kong, April 24, 2017 – Asia Pacific’s overall investment turnover in Q1 2017 increased by 6.2%
year-on-year as investor sentiment remained positive
despite flat year-on-year deal growth, according to CBRE Research’s preliminary
Q1 2017 MarketView figures.
the region, investment performance was polarized in different markets. Singapore and Japan recorded strong investment activity,” said Dr Henry Chin,
Head of Research, CBRE Asia Pacific. “More investors are looking to Singapore
for counter-cyclical opportunities, and this quarter saw the completion of three
major office deals by international investors. In Japan, there was more demand
from investors seeking assets for higher yields in cities outside central Tokyo,
with Yokohama as a hotspot this quarter.”
quarterly investment turnover declined in Australia—attributed
to the drop in transactions—and China,
where deals were mainly below US$250 million. Investors were looking at smaller
deals within China, including decentralized offices in tier-one cities in Q1
tighter controls on capital outflow, Chinese outbound investment slowed down with
less big-ticket transactions. Some Chinese investors opted to engage in smaller
deals. Outbound investment from Hong
Kong and North America picked
up. Several recently raised capital real estate funds deployed their capital in
Japan while two listed Hong Kong companies acquired office buildings in
the office sector, the upcoming / completion of major new high quality projects
in China and Singapore, and the high incentives offered in Australia and Seoul,
continued to support flight-to-quality and flight-to-value relocation among
occupiers. Leasing activity was driven by the technology, media, and telecoms
(TMT) sector and domestic financial institutions.
the region’s retail sector, overall leasing sentiment has improved, however, most
retailers in Asia Pacific remain cautious, displaying stronger demand for more
affordable opportunities. They are taking longer to negotiate leasing terms, conducting
due diligence. In China, the luxury market recorded single-digit growth as more
high-end consumption stayed within the country.
Other key highlights:
Grade A office rental
growth in Tokyo is peaking, but continued growth in Sydney and Melbourne and a
slower decline in Singapore ensured regional
office rental growth remained steady at 0.6% q-o-q.
Most office markets in Asia Pacific will favor tenants in
2017. In Hong Kong, the
rental outlook for the Central district has been revised up amid resilient
demand from Mainland China firms. It is possible for Singapore to return to
some rental growth by the end of 2017 based on higher take-up in new projects.
- Overall retail rents rose by 0.6% q-o-q, driven by Tokyo and the slower rate of decline in Hong Kong.
The food and beverage sector remained the key
demand driver in retail, with home-grown independent brands more active. Other
active sectors included lifestyle homeware, sports goods and entertainment
Overall logistics rents barely increased by 0.2% q-o-q, supported by rental growth in tier-one cities in China and the
In Seoul, the
growth of the online fresh food industry is boosting demand for logistics space,
whereas Singapore saw a pick-up of demand in the semiconductor space.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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