Asia Pacific sees resurgence in property investment volumes in Q3

Direct commercial real estate investments in Asia Pacific totalled US$18 billion this quarter according to Jones Lang LaSalle.

New research from the real estate services firm shows improving investment levels across Asia Pacific’s property markets, increasing 12% on Q2, due to optimistic business sentiment, resurging investor confidence and strong economic fundamentals.

Preliminary figures suggest that Singapore has seen a notable increase of over 500% in total direct commercial real estate transactions over the same period last year, with Malaysia seeing a 76% increase and Australia a 42% increase over the same period.

Dr Megan Walters, head of research for Asia Pacific Capital Markets for Jones Lang LaSalle said “Capital values continued to climb across most of the region in Q3. An increase in institutional acquisitions (en bloc transactions) has been observed and it is expected that more will follow suit although funds may be selective for assets.”

Cross border transaction volumes rose 23% quarter on quarter in Asia Pacific reaching US$5 billion in Q3, with Australia seeing close to a 110% year on year increase in cross border transaction volumes. Looking ahead, Jones Lang LaSalle anticipates that transaction volumes in Asia Pacific will show an increase of 15 to 25% over 2009 figures, reaching the US$77 billion mark approx. by the year end.

Stuart Crow, head of Asia Pacific capital markets for Jones Lang LaSalle said, “With a number of significant transactions expected this quarter and buoyed by positive business sentiment, market fundamentals continue to improve in the region. It is expected that we will see continued enthusiasm for real estate by investors expecting a low interest rate environment and an increase in portfolio deals as the investment market continues to grow.”