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Investment Property – Asia Pacific Investment Trends

By on Aug 08, 2016 in Property News, Research

The completion of several investment property deals pushed up commercial real estate transaction volume by 19% quarter on quarter to US$ 23.1 billion.  but the overall market remained quiet. The top 10 deals accounted for 30% of investment turnover.

Cross-border investment activity remained robust. There was strong activity from international and regional institutional investors pushing up investment turnover to US$8.6 billion, an increase of 73% quarter on quarter. In Singapore, the Qatar Investment Authority purchased Asia Square Tower 1 for US$2.5 billion, the largest ever office transaction in the Asia Pacific region.

Investors will be slower to secure deals in the second half of 2016. This is due to the heightened geopolitical risks from the recent terrorist incidents in Europe, the Brexit, and the upcoming US presidential election. Investors will display a stronger appetite for core assets providing steady income streams. This trend will exert downward pressure on yields.

Fund raising activity slowed this quarter. Investors are set to adopt a more cautious approach in the second half of the year.  The fund raising environment will remain challenging in H2 2016 due to uncertainty over the next interest hike in the U.S. Investors will adopt a more cautious approach and smaller fund managers will take longer to raise capital.

Typical LTV ratios remained largely unchanged but banks’ lending attitude registered a mild adjustment. Banks in Hong Kong turned more agressive towards lending for residential properties, while those in Japan displayed a stronger interest in providing loans to the offshore market.

Source : CBRE Asia Pacific Investment Trends Q2 2016
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Nora Chapman
Nora has been in the Corporate Communications arena for a number of years. Nora's role is to communicate all newsworthy items that are of a PR nature.

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