Investment activity recovers, office stabilizes in Asia Pacific region

Office demand in Asia Pacific continued to improve on a quarter-over-quarter (q-o-q) basis in the fourth quarter 2020, but net absorption remained subdued at 8.8 million square feet, according to CBRE. Occupiers are still cost cautious but fewer downsizing relocations are being observed. The decline in regional class A rents decelerated to 1.2 percent q-o-q, bringing the full-year decline to 4.9 percent year-over-year (y-o-y).

Asia Pacific commercial real estate transaction volume totaled $104 billion in 2020, a decline of 20 percent y-o-y. However, investment activity continued to recover on a quarterly basis, rising 41 percent q-o-q in fourth quarter 2020 to $36 billion. Surging interest in logistics and data centers ensured these sectors registered strong growth in transaction volume in 2020.

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