Heading into a new decade, real estate markets in Asia Pacific have experienced strong investment flows amid accommodative monetary policies and the rising appeal of real estate as a viable alternative investment sector. Investment volumes for income-generating real estate reached a peak of more than US$170 billion in 2018, though transaction activities in 2019 have eased off from the record highs, against a backdrop of rising macroeconomic uncertainties and a weaker global growth outlook (see chart, below).

Japan, China and Australia remain the top investment destinations, attracting two-thirds of real estate investment flows in Asia Pacific over the past five years, with Hong Kong, South Korea and Singapore capturing an additional one-quarter of investments.

Comparing the different cities, Tokyo remained the most actively transacted market in the region for the 12-month period ended September 2019, though volumes continue to be below the peak levels seen from 2013 to