APAC real estate investment could have a record year by end-2021: CBRE

Full-year investment turnover is predicted to grow by up to 20%.

Investment activity in Asia Pacific increased 21% y-o-y to US$32 billion in Q3. According to CBRE, investment increased by 46% y-t-d, reaching US$100 billion from the same period in 2020 and is comparable with 2019. Hong Kong (354%), Australia (121%) and Japan (89%) led y-o-y growth in Q3 2021, while major office markets such as Seoul, Shanghai, Melbourne, and Hong Kong also performed well.

“Asia Pacific real estate investment could have a record year, with several major transactions set to close prior to year-end. We expect full-year investment turnover to increase by 15%-20% y-o-y. The fund-raising environment is also improving, with Asia Pacific-focused closed-ended funds raising nearly US$16 billion over the past three quarters,” said Greg Hyland, CBRE’s Head of Capital Markets, Asia Pacific.

Driven by flight-to-quality relocations, office investment comprised nearly 55% of total Asia Pacific volume in Q3 2021, ahead of industrial and logistics (22%), which experienced strong growth during the pandemic across almost all markets.