Regional investments in logistics and data centers are increasing. عقارات | عقارات قطر | شقق للبيع
Asia Pacific commercial real estate investment showed signs of recovery in the third quarter of 2020, according to global property consultancy JLL, with $35 billion in direct transactions committed between July and September 2020.
Although overall third quarter numbers were down 19 percent year over year, transactional activity increased across many major markets as investors deployed capital with more conviction than at any other time in 2020, according to JLL.
North Asian markets led the third-quarter investment recovery, with mainland China (-10 percent year-on-year), South Korea (-2 percent year-on-year), and Japan (-18 percent year-on-year) all seeing increased transactional activity due to some resumption of economic activity in their respective markets. According to JLL Research, Tokyo and Seoul have both emerged as the top two cities in the world for investment year-to-date 2020.
Over the quarter, investment activity in Australia (-45 percent year on year) and Hong Kong (-27 percent year on year) remained low.
"The first major signs of a resumption of investment activity appeared in the third quarter, with investment volumes in Mainland China, Korea, and Japan all showing significant change. Although volatility will persist for the time being, we assume that low transactional activity has peaked, and our optimism for the fourth quarter is growing "According to Stuart Crow, JLL's CEO of Capital Markets, Asia Pacific.
"In the third quarter, investors returned in greater numbers, reaffirming their interest in North Asian assets and real estate linked to logistics and data centers. We anticipate a broader range of opportunities in the fourth quarter across the area, especially in asset classes such as multifamily and rebounding markets like Singapore "Regina Lim, Asia Pacific Head of Capital Markets Research, agrees.
In the third quarter of 2020, JLL will be tracking the following major themes:
Outperformance by logistics and data centers: The wider industrial sector performed well in the third quarter, with transactions up 76 percent year over year, largely due to logistics and data center deals. In the third quarter of 2020, these funds accounted for 70% and 31% of Japan and China transactions, respectively. In the third quarter, Asia Pacific office transactions were down 35% year on year, while retail and hotel transactions were down 51% and 87 percent, respectively.
Increasing the diversity of investors: The return of more institutional investment managers in the third quarter boosted trust in the recovery. In comparison, private investors dominated operation in the first half of 2020, while larger investment managers awaited more clarification before deploying funds.
The cost of capital is continuing to fall: In the last six months, the cost of capital has dropped dramatically, giving investors more purchasing power as they seek to take advantage of narrowing spreads. Year-to-date, financing costs have fallen 50 to 100 basis points, luring fund managers back into the industry.