According to CBRE's Q3 2016 MarketView data for the Asia Pacific region, total property investment turnover increased marginally in Q3, with a 5.6 percent quarter-on-quarter rise in transaction volume to $24.6 billion. Following the stabilization of the bond and stock markets in H1 2016, as well as the region's lower interest rate setting, investment sentiment improved. apartment for sale in qatar
"This past quarter, domestic capital was very involved in Greater China. Domestic investors continued to invest heavily in China, with many major transactions completed by Chinese insurance companies "CBRE Asia Pacific's Head of Research, Dr. Henry Chin, said. "In addition, business sentiment in Hong Kong strengthened as commercial assets were acquired by Chinese companies and experienced local and boutique real estate investment funds."
Australia and Japan accounted for 52 percent of total cross-border investment in the area this year. International real estate funds were active in Japan, although demand in Australia continued to draw interest from Asian investors as well as domestic money. International investors are increasingly interested in office investment properties in South Korea, especially value-added opportunities. Foreign investors who already had a presence in India continued to add to their portfolios.
In Q4 2016, overall investment activity in the area remained positive, with a number of major transaction deals in the pipeline. Despite the region's steady investment activity, leasing activity in the occupier markets was generally weaker.
Due to a stagnant financial sector and modest growth in the technology sector, leasing enquiries in the office market have slowed. Overall, office rental growth slowed to 0.3 percent quarter over quarter, while Shenzhen saw its first Grade A rental decline since the Global Financial Crisis began, as landlords became more flexible due to oversupply. Shanghai's demand has weakened, and new supply is expected to put downward pressure on rental growth in 2017.
Co-working operators, on the other hand, saw healthy demand in some markets, thanks to the start-up boom, as many large transactions were completed in Hong Kong and Seoul.
Competition for prime retail space grew in the retail sector as more retailers became more risk-averse, concentrating on prime locations rather than secondary locations. Rents will remain stable and are unlikely to increase in 2017, as retailers prepare their store networks and budgets more carefully.
Other notable business highlights from the third quarter of 2016 in Asia Pacific include:
Quarter-on-quarter, office capital values increased 0.9 percent, resulting in more yield compression amid high investment demand.
Office net absorption increased by 13% quarter over quarter, owing to the pre-leasing of space in new ventures and the stabilization of Singapore and Seoul. However, year-to-date net absorption is down 10% from the previous year.
In the retail sector, fast food, sportswear, and entertainment retailers remained busy, but overall activity was muted and there was little new demand. Despite an uptick in short-term leases aimed at capturing holiday sales, the leasing sector is expected to remain quiet for the rest of the year.
Despite continued support from the Pacific region, declines in Tokyo and Shanghai have pushed overall retail rents down by 0.1 percent quarter-on-quarter. In Hong Kong and Singapore, the extent of the correction has begun to diminish.
The stronger performance in Sydney and Wellington was offset by rental decreases in Hong Kong, Perth, and Singapore, leaving overall logistics rents unchanged at +0.1 percent quarter-on-quarter.
Industrial capital values rose by 0.8 percent quarter over quarter, owing primarily to growth in Shanghai and other Pacific gateway cities.