Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Reclaim 2020: H2 Insights

Chek Yee Foo • 21/08/2020

Rapid improvements in sentiment and investment appetite seen in key Asian markets since H1

Tokyo, 21 August 2020 – Transaction activity in the investment market is expected to improve in H2 2020 but will remain below trend despite limited signs of distress so far.

“Investors have remained on the sideline for much of H1 2020, with volume down 27% year-on-year. As economies reopen, investment activity is expected to increase. Logistics appetite continues unabated and there is heightened interest in alternative asset classes. We are also experiencing ongoing interest in the office sector, albeit generally for lower risk stabilized assets in CBD areas.” said Gordon Marsden, Regional Director, Asia Pacific Capital Markets at Cushman & Wakefield.

The overall regional investment volume was down by almost 40% y-o-y in Q1 2020 at US$119bn – the softest quarter since Q1 2016. On the positive side, volume picked up in Q2 2020 to reach over US$200bn, however, this is below the three-year rolling quarterly average of US$209bn. The implication is that investment in 2020 is likely to fall well below last year’s totals.

At the sector level, investment in all asset classes is well below rolling averages, though investment in the retail and hotel sectors have been hard hit with both recording anemic volumes in H1 2020 – down 52% and 41% y-o-y respectively. There is limited interest in Retail or Hospitality assets, except in the case of retail where they play to the underlying daily needs of consumers. More broadly, these two asset classes will attract capital if there is repositioning potential or the possibility of a major adjustment in pricing.

Office investment also weakened dramatically, down 43%, to $27bn. In contrast, the logistics sector continues to gain from the growth of ecommerce and has seen sustained investor interest and while down year-on year, the decline has been less dramatic than in other sectors at 3% for H1 2020, which could also be more a product of a shortage of supply than an outright fall in demand.

Graph Reclaim 2020

Deployment of capital, of which there remains an abundance, is likely to remain challenging, although there is some encouraging activity in participation via clubs, joint ventures and partnerships. This may include follow on investments with managers and operators where the relationship was formed pre-COVID-19 where the need to travel to consolidate or cement the relationship is not as essential.

With China showing early signs of a rapid rebound and the rest of the region set to follow suit towards the end of the year or early next year, the Asia Pacific region is proving to be particularly attractive to global investors, especially in mainstream sectors such as office and logistics as well as growing subsectors such as data centers and senior living. While a full recovery is still some way off, volumes would have likely troughed and should gain momentum in the latter part of the year.

 

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. In 2019, the firm had revenue of $8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.


 

 

 

RELATED INSIGHTS

APAC Marketbeat
MarketBeat • Insights

Japan MarketBeat

Cushman & Wakefield MarketBeat reports analyze quarterly economic and commercial real estate activity including supply, demand and pricing trends at the market and submarket levels.
Hideaki Suzuki • 15/07/2021
tech cities
Research • Economy

Tech Cities: The Global Intersection of Talent and Real Estate

With a significant growth forecast for the global tech sector in the next 10 years, the evolution of tech cities around the world as hubs of tech talent and suitable commercial real estate will continue. In this report we assess how tech cities are competing for business across key talent, real estate, and business environment metrics.
David Smith • 13/09/2022
APAC Capital Flows - Supply Chain Management webinar
Insights • Capital Markets

Cushman & Wakefield Webinar: Asia Pacific Capital Flows - Supply Chain Management

In this webinar, we have invited Kevin Lee, Head of Real Estate Solutions, APAC at DHL Supply Chain and Tim Foster, Head of Supply Chain & Logistics Advisory, APAC at Cushman & Wakefield to share their views on this burning topic.
07/03/2022
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS