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This report provides insights to investors into real estate transactional volumes as well as the emerging trends and opportunities in the Asia Pacific commercial real estate markets. So far, we’ve received very good feedback about the report’s content from our audience.

Some key takeaways of the report:

• APAC real estate investment markets are on an upswing following a progressive recovery in the world’s economies since the beginning of the year
• Transaction volumes across the region surged to new heights in H1 2021, up 28% compared to H1 2020, totalling a new record of USD103 billion
• The industrial and logistics markets across APAC are the fastest-recovering sectors, registering 70% growth year-on-year in H1 2021
• Asset dispositions by the APAC PE funds in the years to follow will bring more investment opportunities for investors
• REITs are garnering investor interest with a recovery in market pricing and potential IPOs on the cards
• Large-scale redevelopment strategies will support buy-side demand ahead

COVID-19 induced lockdowns have exposed the weaknesses of income-producing properties around the world. As a result, two-tiered markets have formed, with more resilient prime assets continuing to hold their values, while non-prime assets are seeing their values deteriorate. In response to this, we are witnessing massive moves to repurpose assets and bring them to relevance in the evolving landscape across the region.

There are five demand drivers consisting of both the pull and push factors influencing the Great Asset Repurposing of the Decade.

This article was originally published in https://www.knightfrank.com/

“Despite operating under the shadow of the pandemic, warehouse markets across the region have remained largely stable, driven by sustained demand from the e-commerce sector. Recent events that have impacted commitments to customers have put the development of supply chain resilience into focus and major occupiers are responding by re-configuring their strategies through building out inventory buffers and expanding urban distribution nodes. This will have positive knock-on effects for demand to strengthen for logistics spaces. Developers in the region remain on the hunt for opportunities to capitalise on growth trends, indicating sustained confidence in the region’s warehouse markets.”

The ongoing recovery in key property markets across Asia Pacific continued in the second quarter of 2021 and looks set to sustain through the second half, aided by strong demand for commercial assets from end-users as well as investors.

In China, a total of 30 deals were finalised across major markets, as both domestic and foreign market participants sought to acquire key assets across property segments. Korea continued to witness record-high unit prices for prime office space in Seoul, and Japan’s property markets remained buoyant in the face of stringent restrictions. In Singapore, investment activity was dominated by the privatisation of REITs, while in India, global private equity (PE) firms and developers made significant acquisitions in metro markets. Taiwan witnessed a surge in demand for commercial property from manufacturers on the back of strong export growth. In the Philippines, e-commerce companies and outsourcing firms took up space in data centres while healthcare and logistics companies should lead office take-up in the coming months. Thailand’s office market remained stable though its troubled hospitality industry could see higher transaction levels as beleaguered owners look to sell assets. We also expect to see more joint ventures between Thai and international investors across sectors. In Indonesia, the residential sector is expected to receive a boost from the extension of a tax waiver while urban mixed-use projects in the capital, Jakarta, received an influx of foreign funds as investors bet on a speedy post-COVID-19 recovery.