Foreign Property News | Posted by Shwe Zin Win
Real estate investors in the Asia Pacific (APAC) region had reasons to cheer.
Investments in the commercial real estate sector set a new record of $45 billion between January and March 2019 (Q1/2019), a 14 per cent jump from the corresponding period last year, according to a report released by real estate consultant JLL.
The growth in the APAC region is buoyed by an increased number of transactions in China that accounted for approximately 40 per cent of the region’s transaction value.
The Asia Pacific performance is rather impressive when compared to the global scenario.
Globally, the year-on-year real estate investments declined 8 per cent to $156 billion during the quarter.
According to a JLL prediction, global investments in the sector is expected to plunge by about 5-10 per cent in 2019, to roughly $690 billion and the slowdown can be attributed to the slump in the American and EMEA region, particularly in the retail and office sectors.
Meanwhile, Asia Pacific is projected to outperform.
Cross-border capital boosts China growth In China, the total value of transaction in the January-March quarter stood at $17 billion, double of Q1 2018.
The country this year witnessed some mega deals such as the $1.6 billion sale and leaseback agreement between online retailer JD.com and Singapore sovereign fund GIC, and the $1.3 billion acquisition of Dinghao Plaza by European private equity firm Partners Group.
These large-ticket transactions contributed significantly to the surge in APAC investments.
Ref: Property Report