Asia Pacific commercial real estate transaction volume set new quarterly and annual highs in Q4 2017 amid robust investment activity in China, Hong Kong, Singapore and Japan. Property funds and property companies drove demand, accounting for half of total turnover.
Several big ticket transactions were completed, with the top ten deals accounting for 30% of total turnover. Major deals included the sale of The Centre for US$5.1 billion and The Link REIT’s retail portfolio for US$2.9 billion, both in Hong Kong.
Cross-border investment also set quarterly and yearly highs as investors from Hong Kong and Singapore turned more active in overseas markets. Pan-regional private equity real estate funds were active in deploying capital across Asia Pacific, primarily in Japanese regional cities.
Asia Pacific will continue to attract solid investor demand in 2018. However, transaction volume is likely to moderate as the pool of investible stock has shrunk further following the completion of several major deals in 2017.