Along with Japan, Singapore, Australia and China are demonstrating strong performance in the commercial property sector.
In Australia, transaction volumes in the first half of the year were up 27 percent compared to the first half of 2012, fueled by continued demand from both offshore and domestic institutional investors and pension funds, according to global property specialist, Jones, Lang Lasalle in the latest report on commercial property in the Asia Pacific region.
In China, commercial property transactions bounced back considerably in the second quarter after a slow first quarter, rising 65 percent quarter to $6 billion. For the first half of this year, transactions increased 97 percent on the second half of 2012. According to Jones Lang LaSalle, the sharp increase in commercial property market transactions was prompted by foreign investors completing a large number of deals.
Commercial property investment in Singapore stayed resilient in the second quarter despite multiple measures by the government to cool rising prices.Transaction volumes grew 11 percent in the second quarter, compared to the previous quarter.
Overall, commercial real estate investment in the Asia-Pacific region saw strong growth of 21 percent in the first half of 2013 year-on-year, totaling $59.7 billion. Jones Lang LaSalle forecasts transaction volumes to total $110 billion by the end of the year.
Stuart Crow, head of Asia Pacific capital markets at Jones Lang LaSalle said: “We are seeing the results of increased allocations to direct real estate by large global sovereign and pension fund investors. Large US, Canadian and Middle Eastern investors have returned to the region and, together with active Asian high net worth and pension funds, are creating strong demand for assets across the region. Japan and Australia, remain particularly active and, given a robust pipeline for the remainder of 2013, will maintain our forecast for transaction volumes to reach USD 110 billion by the end of 2013, which is slightly below the record of USD 120 billion in 2007.