Large-scale commercial and industrial transactions in multiple markets have helped offset weakness in some other sectors of Asia Pacific property, according to a new report from Colliers International.

The firm's Asia Pacific Market Snapshot Q2 2020 examines the previous quarter’s property market performance in 19 Asia Pacific markets and provides forecasts for the current and upcoming quarters.

Colliers International Capital Markets and Investment Services Managing Director for Asia, Terence Tang, told WILLIAMS MEDIA there had been "emerging and encouraging" signs of recovery in the region, which had been reflected in "fairly firm" investor appetite and activity.

Asia Pacific Market Snapshot Q2 2020 Key Findings:

• Deals in Australia’s major cities show market’s continued appeal.
• Transaction volumes in Beijing jump over 200 per cent year-on-year.
• Domestic demand poised to lead regional hotel sector recovery.
• Korea office sector transactions top US$2 billion for the quarter.
• Logistics, data centre assets expected to deliver long-term value.

“We have observed these are highly encouraging upward trends that transactions are picking up against a backdrop of economic volatility and uncertainty,” he said.

"The industrials sector, both logistics and technology centres, will continue to appeal to investors given the strong uptake of e-commerce and accelerated digital transformation across the region, while interest in quality office assets in major cities remain high.

Colliers International Capital Markets and Investment Services Managing Director for Asia, Terence Tang. Source: Colliers International.

"We are anticipating investment activity to gain pace in the coming months as investors move to take advantage of the opportunities that will emerge as economies further stabilise and markets bounce back.”

According to the report, Australia is still viewed as an investor favourite in the region, with several significant transactions across its cities in the second quarter.

Colliers International Managing Director of Capital Markets and Investment Services for Australia and New Zealand, John Marasco, said deal flows are expected to increase in Sydney, Melbourne and Brisbane in the second half of the year as conditions normalise, given Australia’s enduring appeal as a regional and global investment destination.

“We are expecting an increase in investment activity in the second half of the year,” he said.

“Demand for office assets in Australia’s key cities should remain high as companies activate ‘return to office’ policies, while investors are also looking to buy into New Zealand.”

Click here to download a copy of the report.

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