Asia pacific commercial property set for strongest ever year

Photo credit: Xopher Lance

The firm’s latest report shows that investment in the region has risen 33 per cent year-on-year to reach $30 billion. The surge in volume, driven by “unrelenting demand”, has prompted JLL to raise its forecast for the rest of 2013 from $110 billion to $120 billion. If the total is reached, it would rank 2013 alongside 2007 as the strongest year ever in terms of transaction volumes.

Japan, China and Australia fuelled the growth, accounting for 69 per cent of 2013’s completed deals. Indeed, in Japan, $8.7 billion of deals were completed in the third quarter of the year, 139 per cent up on the same period in 2012. China enjoyed an even higher rise of 167 per cent.

Singapore’s market was also extremely popular, with activity leaping 106 per cent in the third quarter of this year compared to the second quarter alone. Hong Kong, meanwhile, saw its transaction volumes plummet 76 per cent as the government’s cooling measures take effect.

“Although transaction volumes have surged over the first three quarters of this year, as predicted, we are starting to experience caution over interest rates after the Federal Reserve’s recent announcement to slow its asset purchase programme,” commented Megan Walters, head of Research for Asia Pacific capital markets at Jones Lang Lasalle.

“Longer dated bond yields across the region have moved higher, highlighting concerns around the direction of global rates and prompting investors to underwrite interest rate rises in their acquisition due diligence. Nonetheless, given the robust pipeline and continued strength of investor sentiment, we remain positive on the outlook for the remainder of the year.”

Source: Property Wire