Asian Real Estate Markets See a 53% Rise in Q3

by GuestPoster on December 28, 2010

There has been a recent surge in the real estate market investment activity in the Asian region. The positive sentiments of the investors is adding momentum to this activity which, excluding land transactions has notched up an impressive 53% rise in a quarter on quarter basis to amount to a total of 18 billion dollars. This takes the overall transaction volume of the year to 46 billion dollars, 102% above the numbers in 2009. The most liquid locations saw the greatest number of investors with Hong Kong leading the pack, accounting for 29% of the investment activity. This amounts to an impressive 5.2 billion dollars. Singapore and Japan have accounted for 22% and 20% of the regional volume too. There has been a massive rise in the transaction volume in China, South Korea and Singapore, accounting for 191%, 165% and 161% respectively. Institutional investors have also shown a great interest notching up 7.8 billion dollars of total investment volume that represents a 66% rise from the number a year ago.

This strong show also owes itself to the strengthening of some of the Asian currencies which has inflated the values when represented in US dollars. With 3.1 billion dollars cross border real estate also has seen lot of investment activity. There has also been a significant rise in the number of investors from outside Asia with people looking to buy investment property. A great improvement was seen in the investments in the office sectors during the third quarter, amounting to nearly 7.4 billion dollars. This includes 6 of the 10 biggest deals that were recorded during this period. South Korea, Singapore and Hong Kong, collectively accounted for 5.3 billion dollars worth of transactions as far as office properties were concerned.

Major retail properties saw a 24% turnover accounting for 4.3 billion dollars. The investment in retail assets improved significantly due to growth in the demand in the domestic space and a growing number of tourists to the region. With 1.7 billion dollars, Japan has accounted for the biggest share of retail investment. There has been a steady rise in the industrial sector as well with transactions accounting for 1.1 billion dollars. Although this is similar to the rise in first and second quarters, it is significantly higher compared to the numbers during the same period last year. The market outlook overall is optimistic in spite of some weakening economic indicators, reasons to invest in property are still high. The total real estate investment is expected to reach about 60 billion dollars for the year.

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