Which Asia Pacific markets did real estate investors set their sights on in 2016?
Domestic investors were active across most Asia Pacific real estate markets last year, as many looked to purchase real estate assets at home amid global political and economic volatility. Moreover, with returns on core and non-core assets in Asia Pacific improving, more Asian investors are looking to domestic and intra-regional opportunities.
Chinese investors, for once, increased domestic real estate investment by 50 percent as they pumped in US$29.1 billion into local assets last year – mainly in Tier 1 cities Shanghai and Beijing. Meanwhile, South Korea’s domestic investment surged 75 percent to reach US$12.4 billion last year. Japan’s real estate market did well too as low bond yields and a sluggish stock market have resulted in domestic investors seek higher returns in property coupled with greater inbound investment due to the upcoming Tokyo 2020 Olympics and ongoing tourist boom.
Traditional favourite Australia remains popular as a hot spot in 2016 thanks to its transparency, substantial liquidity in buying and selling assets at stable prices and healthy yield spreads.
For a more in-depth look at investment inflows and outflows by major markets in the region, download JLL’s latest paper.