AsiaPac transaction volumes reached US$98 billion in 2011

It was the second strongest year for Asia Pacific, and that's just for commercial property alone.

Preliminary direct commercial property transaction volume figures released by Jones Lang LaSalle Capital Markets Research demonstrated a subdued first quarter of 2012, with recorded volumes down compared to the same period in 2011.

Arthur de Haast, Head of the International Capital Group at Jones Lang LaSalle said: “Whilst volumes are down in Q1 2012 and the economic backdrop remains uncertain, the underlying attractiveness of real estate continues due to strong demand and sound fundamentals. The final quarter of 2011 was one of heightened uncertainty in Europe, but reassuringly policy makers realised the seriousness of the situation and took the appropriate action, which helped to stimulate activity across the continent.”

“2011 was the second strongest year on record for Asia Pacific with annual volumes at US$98 billion. Despite a slowdown in Q1 2012 compared to Q1 2011, we expect performance to improve during the coming months as monetary and fiscal policy is gradually loosened around the region.”

The desire to close deals in the final quarter of 2011 was evident with a further upgrading of the full year numbers. Such was the extent of activity in 2011 as a whole that it will take time for that momentum to build again in 2012.

David Green-Morgan, Global Capital Markets Research Director at Jones Lang LaSalle commented: “Commercial property continues to draw capital and interest from institutional investors, increasingly through allocations diverted away from equities, commodities and other asset classes. This trend will continue as the attraction of fixed assets increases in line with the predicted rise in global inflation over the medium-term. Whilst the global economic road ahead might not be completely smooth, investor sentiment remains positive. The on-going debt issues in commercial property will continue to pose problems for some and present opportunities for others all of which will contribute to transactional activity.”