Asia Pacific investment volumes hold steady with Japan leading the way

Asia Pacific investment volumes recorded in the first half of 2013 stood at US$ 57.9 billion, down marginally 1.8% from the same period of last year, but up 9.6% from the second half of 2012, Knight Frank data has revealed.

According to Knight Frank’s Asia-Pacific Capital Markets report, Japan has remained the most active market followed by Australia, Hong Kong, China, and South Korea.

In Japan, volumes are up 12.1% when compared to the same period last year. The positive sentiment brought about by the monetary and fiscal stimulus measures and the weakening Yen has encouraged offshore interest, with foreign investors such as AXA Real Estate, GE Capital, Goldman Sachs active purchasers over the last six months. As more capital has entered the market, prime office yields have compressed to 4.0%.

Australia saw activity increase significantly during H1 2013, reaching US$13.2 billion, with Sydney continuing to be the most active market. Notable transfers included the NSW Government portfolio to Cromwell Property group for US$ 373 million and AAMI Building in North Sydney to GE Capital for US$ 118 million.

Some liquidity has returned to Vietnam, despite a continuing crisis in the banking sector, with the largest deal on record going through with the sale of Eden Center (Vincom Center A) to a local purchaser for US$ 470 million.

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