Real estate investment in Asia Pacific rose 16 percent to a record $52 billion during the fourth quarter 2017, with Hong Kong, Australia and Japan remaining favorite markets among investors, according to JLL.
Hong Kong was the favorite of the region with transaction volume surging 171 percent year-on-year to $7.4 billion in the fourth quarter. It was mainly driven by mega-deals, including the $1.15 billion sale of Wheelock’s 8 Bay East in Kwun Tong.
Investment volumes in Australia reached $7.2 billion during the fourth quarter 2017, compared to $5.2 billion in fourth quarter 2016.
“Sydney and Melbourne remain the favored investment destinations, andtighter pricing and a shortage of opportunities have resulted in increased activity in Brisbane, Perth, Adelaide and Canberra. Brisbane commercial property markets accounted for more investment activity during the quarter [$1.9 billion] than Melbourne did [$1.1 billion],” said Andrew Ballantyne, head of research, JLL Australia.
Transaction volumes in Japan reached $10.5 billion in fourth quarter 2017, up 31 percent year-on-year, with foreign investors remaining active. Tokyo remains atop of investors’ lists, accounting for 45.5 percent of total fourth quarter transaction volumes.
