Welcome!

News Feed Item

JLL Confirms 2013 Strongest Year on Record for Asia Pacific Commercial Real Estate Investment Markets

Source: Jones Lang LaSalle


-- Investment in the region up 29 percent in 2013, surpassing previous record in 2007
-- Japan up 67% and third most active market globally after US and UK


Singapore, Jan 16, 2014 - (ACN Newswire) - Data just released by Jones Lang LaSalle (JLL) shows that 2013 was the strongest year on record for commercial real estate markets in Asia Pacific, with direct investment reaching US$126.7 billion by year-end. Transaction volumes over the year were up 29 percent on 2012, surpassing the previous record of US$120.5 billion in 2007.

Stuart Crow, head of Asia Pacific capital markets at Jones Lang LaSalle said, "2013 proved to be an outstanding year for Asia Pacific commercial property markets, exceeding our revised expectations of US$ 120 billion. Unrelenting demand has prevailed in spite of macro concerns around China's growth outlook, stability in the EU, and the US government's fiscal strategy. As the market gains further clarity on these issues, we expect a more stable growth outlook which should lead to activity in 2014 surpassing that of 2013."

VIDEO:
Click here (http://youtu.be/mHZziAT25vE) to watch our experts give their views on the 2014 outlook for Asia Pacific's real estate markets

The year's record-breaking growth was driven by the region's core markets of Japan, China, Australia and Singapore as investor sentiment was lifted by on-going improvements in both debt and equity markets. Throughout the year, commercial real estate markets experienced increased liquidity coupled with greater allocation from multi-asset managers, causing transaction volumes in every quarter to record an improvement on their corresponding period in 2012.

The resurgent Japanese market was a major contributor to the growth in 2013, up 67 percent y-o-y, re-establishing its position as the third most active market globally after the US and UK. Record levels of investment were also reached in China, Australia and Singapore, up 66 percent, 30 percent y-o-y and 40% y-o-y respectively.

Dr Megan Walters, head of Research for Asia Pacific capital markets at Jones Lang LaSalle commented, "In 2013, we continued to see a mismatch between supply and demand across a number of markets in the region. As a result, investors moved up the risk curve in search of higher yields and to mitigate against potential pressures from global fiscal policy. While we did experience caution in the markets following the reduction of the US Federal asset purchases, interest rates across the region proved less reactive when compared to the response following the announcement earlier in the year. Given the strength of investor sentiment and on-going demand, we expect markets to perform as well, if not better, than 2013 for the remainder of 2014."

Country focus

Japan continues to create headlines around the region, with transactions volumes reaching US$ 12.2 billion in Q4 2013, bringing the full year total to US$ 41.7 billion, up 69 percent on 2012. In local currency terms, the growth is even more remarkable with yen volumes doubling that of 2012. Portfolio deals accounted for the majority of transactions in the final quarter with retail assets comprising 46 percent of deals. Despite competition from a liquid domestic market, interest from foreign investors remains high, although foreign group still accounted for more disposals than acquisitions through the year. With the market performing well, renewed confidence and improving liquidity, 2014 could see a number of legacy assets come to the market as landlords take advantage of the improved conditions.

Increasing demand from both foreign and domestic investors led to strong growth in the Australian market with transaction volumes reaching US$ 6.4 billion in Q4 2013, up 62 percent on Q4 2012 while full year volumes set a new record at US$ 21.9 billion, up 33 percent on 2012. Development activity and the subsequent fund-through deal flow has been a major contributor to investment volume growth in 2013. Foreign listed REITs have also become more active in the market towards the latter part of the year with a number of deals executed during the final quarter.

Investment activity in China also set new records on both a quarterly and yearly basis with transaction volumes reaching US$ 8.5 billion in Q4 2013 and US$ 25.1 billion by year end, up 71 percent on 2012. With a number of large properties trading in the final quarter, office assets accounted for the majority (80 percent) of deal flow. As China's structural investment growth continues, it confirms its place as the regions second largest market by transaction volumes.

Despite subdued commentary from Singapore over the year, investment activity has lifted, registering US$ 3.3 billion in the final quarter of 2013 and setting another record full year figure of US$ 11.8 billion, up 40 percent on 2012. Despite this, volumes in the middle and lower segments of the market were suppressed with overall volumes supported by a few very large deals and REIT IPOs.

Indonesia was a standout performer in 2013, recording the highest rent growth in the region. This has generated significant interest from both domestic and foreign investors, however accessing product remains challenging. Transactions on stabilised assets are rare and investors are looking at development, fund-through and joint venture structures in order to gain exposure to the market.

Investment conditions in Hong Kong eased with year-end volumes down 35 percent on 2012 to US$ 7.3 billion. With much of the institutional activity from Hong Kong groups currently focused on cross border markets, the bulk of domestic activity has come from end-users and local/PRC developers.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.7 billion of real estate assets under management.

Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26,700 employees operating in 80 offices in 14 countries across the region. The firm was named 'Best Property Consultancy' in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. www.ap.joneslanglasalle.com

Source: Jones Lang LaSalle

Contact:
Madeleine Little
Phone: +65 6494 7003
Email: [email protected]

Rachel Smylie
Phone: +65 6494 3771
Email: [email protected]




Copyright 2014 ACN Newswire. All rights reserved.

More Stories By ACN Newswire

Copyright 2008 ACN Newswire. All rights reserved. Republication or redistribution of ACN Newswire content is expressly prohibited without the prior written consent of ACN Newswire. ACN Newswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
CIOs and those charged with running IT Operations are challenged to deliver secure, audited, and reliable compute environments for the applications and data for the business. Behind the scenes these tasks are often accomplished by following onerous time-consuming processes and often the management of these environments and processes will be outsourced to multiple IT service providers. In addition, the division of work is often siloed into traditional "towers" that are not well integrated for cro...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...