Asia Pacific real estate investment down 17% in Q2

Commercial real estate investment activity in Asia Pacific declined 17 percent year-on-year in the second quarter of 2023 as investors remained cautious when making capital deployment decisions. According to JLL, the investment activity in the region totaled $26.8 billion in the second quarter because of ongoing uncertainties in the global economy, with resilience in the logistics & industrial and living sectors offset by a sharp contraction in office, retail and hotel sectors.

The decline in investment volumes comes amid shifts in the investment market over the quarter. JLL proprietary data shows that relative to earlier quarters, most second-quarter deals were traded with a narrower bid-ask spread, demonstrating sellers’ willingness to meet buyers by lowering their asking price. Even with asset repricing putting pressure on total returns, capital-value appreciation is still forecast across geographies and sectors, which speaks to the strength of rental growth and stea