Asia Pacific real estate investment up 20% y-o-y in 1Q2022: JLL

SINGAPORE (EDGEPROP) - Real estate investment growth in the Asia Pacific region rose 20% y-o-y in 1Q2022, according to a market report by JLL. The consultancy’s report noted that $40.8 billion worth of capital was invested in real estate in the region during the quarter.

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Most of the capital was deployed into Singapore, South Korea, and Australia. Investors were also bullish towards retail, office as well as logistics and industrial assets. “We are optimistic that the region’s real estate sector will withstand rising interest rates and growing uncertainty. We are still seeing intense competition for assets and maintain our projection of over $200 billion in direct investment into Asia Pacific for 2022,” says Stuart Crow, CEO, capital markets, Asia Pacific, at JLL.

The commercial real estate segment in Singapore recorded an investment growth of 134% y-o-y, ending the quarter with $5.7 billion in investments. This was the largest growth in the commercial sector in the region during this period, says JLL.

South Korea saw its real estate investment jump 89% y-o-y to $8.2 billion, diversified across the office, retail, logistics, and industrial sectors. Meanwhile, Australia posted growth of 49% y-o-y with $4.7 billion invested, especially in office assets.

Despite a 26% y-o-y decline, Japan remained the strongest investment market in the region, pulling in $8.5 billion. The investment performance in China was flat last quarter with volumes totalling $8.3 billion.

“(Investors) have demonstrated in the first quarter their confidence in spreading capital across geography and sector. In the coming months, momentum will shift towards logistics and industrial as supply comes to market, and funds will increasingly focus on income resilient sectors,” says Pamela Amber, head of investor intelligence and strategy, Asia Pacific, at JLL.