Asia Pacific commercial real estate transaction volumes in the third quarter of 2019 have reached a record, bringing the year-to-date activity to a new high of US$128 billion, data from global real estate consultancy JLL reveals.

Transaction volumes for the period July to September climbed 18 per cent year-on-year to US$42 billion, representing the best third-quarter performance on record, according to JLL’s most recent Global Capital Flows report.

This represents a 10 per cent increase in volume versus 2018, with Asia Pacific’s performance in the first three quarters of the year also significantly better than the global average transaction volume growth of 1 per cent.

At a glance: 

• JLL's Global Capital Flows report has revealed there have been US$128 billion worth of real estate transaction volumes in the Asia Pacific this year to date.
• The report shows that Singapore, South Korea and Hong Kong were among the top ten buyers of global real estate in the first three quarters of this year.
• Among Asia Pacific cities, Seoul is the most liquid with US$15.4 billion worth of real estate transacted in the first three quarters of the year.

JLL Asia Pacific Capital Markets CEO Stuart Crow said Asia Pacific investors were seeing past current headwinds such as slowing growth and trade tensions.

“Liquidity has strengthened in markets such as Seoul, Tokyo and Singapore, where occupier fundamentals remain solid," he said.

"We are expecting Asian investors to further diversify their real estate holdings within the region and globally in the months ahead as they seek higher yields.”

Among Asia Pacific cities, Seoul is the most liquid with US$15.4 billion worth of real estate transacted in the first three quarters of the year.

Shanghai and Singapore stand out

According to JLL, China is driving an increase in transaction volumes in the Asia Pacific, with activity remaining elevated after a "vigorous" start to the year.

Regional growth has also been supported by the robust recovery in Singapore, where year-to-date activity now stands at an all-time high, says the report.

Investment into Shanghai reached US$14.4 billion year-to-date with US$3.5 billion received in the third quarter.

The Chinese city was the largest recipient of cross-border investments among Asia Pacific cities in the first three quarters of the year, followed by Singapore and Sydney.

Globally, it ranked third after Paris and London.

The report also identified Singapore’s office real estate sector as one of the strongest in the world with volumes rising by over 175 per cent year-on-year due to strong rental growth and net absorption.

Deal volume in the city-state reached an all-time high, supported by Allianz and Gaw Capital’s US$1.15 billion acquisition of Duo Tower in July.

Click here to download the full JLL Capital Flows report.

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