Asia Pacific Capital Markets in Focus – October 2016.
- Investors increasingly look for to value in off-market deals, newer/secondary cities as well as newer sectors. Asset-specific strategy may be needed going-forward
- Cap rates have compressed to record low in some markets on the weight of capital chasing assets, but positive spreads to risk free rates remain
- Slower growth year-to-date in AP-focused fund fundraising but record dry powder levels remain
- Transaction volumes in Q3 2016 were up 5% y-o-y to USD 33.1bn. China and Singapore were up y-o-y, but Australia and Japan were weaker as owners held onto stock. Deals volumes in the first nine months were stable at USD 86.6bn
- Cross-border investors remain active on both sides of the ledger, accounting for 31% of Q3 total
- Intra-regional purchaser capital flow within the region trended slightly higher in Q1-Q3. Capital flow by inter-regional purchasers regionally have fallen y-o-y
- Office | Rents grew in most markets but mixed demand by city. Demand momentum slowed in Q3
- Retail | Retailers are expanding in Australia but cautious towards expansion across most of Asia
- Industrial | Demand is supported by 3PLs & e-commerce in Asia, and retailers in Australia
- Residential |Sales improved in Greater China and Singapore but slowed in Australia in
- Hotels |Diverse trading performance. Still strongest showing in Tokyo and Australia
For more, including investment deal highlights and city analysis across Asia Pacific, download our Capital Markets in Focus Report.