Real estate investment returns in Asia-Pacific increased rapidly

27/04/2017   Viewed: 937
According to CBRE, the profitability of the Asia Pacific region increased by 6.2% in the first quarter of 2017 thanks to investors' confidence despite slight transaction growth.

CBRE Asia-Pacific Head of Research, Henry Chin, said: "In the region, investment efficiency decentralized according to different markets. Singapore and Japan recorded the most active investment activity. Many investors are looking for counter-cyclical opportunities in Singapore and three large office projects have been successfully implemented by foreign investors this quarter. In Japan, investors are more likely to seek higher-yielding assets in suburban Tokyo cities, especially in Yokohama this quarter. "

Meanwhile, according to CBRE representative, during the quarter, Australian investment income plummeted, leading to a decline in trading. Similarly, with trading values ​​below US $ 250 million, investment returns in China are also down. Investors have come to smaller deals that include off-center office buildings in first-tier cities. China's offshore investment has slowed with little value-for-money deals. Strict control over the flow of investment. Some Chinese investors have chosen lower value deals.
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Investment returns in the Asia-Pacific region increased by 6.2% in the first quarter of 2017. Internet photos

Offshore investment from Hong Kong and North America has prospered. While the two companies listed on the Hong Kong Stock Exchange have bought some office buildings in Singapore, some real estate investment funds have leveraged their capital to invest in Japan.
In the retail market, the rental situation has generally improved. However, most retailers in Asia-Pacific are still cautious and have greater demand for affordable opportunities. In China, as luxury goods are mainly packaged in the domestic market, luxury goods market recorded a one-digit growth.

With offices, high incentives in Australia and Seoul, and major high-end projects in China and Singapore, the tenants focus on quality and value when moving offices. Rental activity is dominated by the technology, telecommunications, and financial institutions in the country.
Mr. Henry Chin has made some specific points in the Asia-Pacific region:
The office market in Asia-Pacific will attract tenants in 2017. Singapore rents are expected to increase by the end of 2017 with many new projects underway. In Hong Kong, rents in the central area have increased due to improved demand from Chinese mainland companies.

Grade A office rents in Tokyo are at a peak. However, rents in Singapore slumped slightly while rents in Sydney and Melbourne continued to increase, which led to an increase in office rents in the region at a steady 0.6% quarter-on-quarter.
Compared to the previous quarter, average retail rents rose by 0.6%, affected by Tokyo and decelerated in Hong Kong.

Due to the growth in rents in first-tier cities of China and the Pacific, rental rates increased by 0.2% quarter-on-quarter.
The catering industry still dominates the demand of the retail market, with independent indigenous brands becoming increasingly active. Other industries such as home furnishings, sports equipment and leisure clubs are also active.

In Seoul, the growth of the live food industry is fueling demand for warehouses, while Singapore has a demand for semiconductor storage space.
(According to Young Intellectuals)

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