Investment in commercial real estate across the region declines almost a third from a year earlier.
Commercial real estate investment activity in Asia fell by 30 percent from a year earlier in the first quarter of 2023, data from the real estate consulting firm JLL indicates.
In a media release sent Tuesday, JLL indicated that the market continues to be a challenging one as a result of tightening lending standards due to higher interest rates, which will be something that continues to weigh on markets and provide uncertainty.
«However, Asia Pacific remains more insulated and we’re confident that liquidity risk is well contained in the region and a resumption of activity is a matter of when, and not if,» Stuart Crow, CEO, Capital Markets, Asia Pacific at JLL indicated.
Japan Outperforms
Total investment activity in Asia real estate was $27 billion in the first quarter, with Japan outperforming the rest of the region. It recorded $8.9 billion in investment activity in the first quarter, a gain of 4.7 percent from a year earlier.
The other major countries in the region experienced declines. Australia was down 26 percent year-on-year, China fell 17 percent, although activity was limited outside Shanghai. Hong Kong saw moderated developments.
Singapore saw the largest percentage decline in the region, with investment activity falling 67 percent from its relatively high base a year earlier. JLL indicated that the reason for the fall was limited activity in the office and retail sectors.
