Volumes of real estate transactions in the Asia Pacific hit US$86 billion
By Roubeeni Mohan
Real estate transaction volumes in the Asia Pacific has hit US$86 billion in the first half of 2019, according to JLL’s latest Global Capital Flows report.
The Asia Pacific region is the only region to record a year-on-year increase of six per cent globally. The report reveals that the region’s momentum is likely to moderate over the rest of the year, while investment levels are projected to reach a new full-year high in 2019.
“Singapore’s office sector has become a favoured investment destination over the last 12 months, largely supported by the market’s very favourable demand-supply dynamics and a benign interest rate outlook,” says Chris Fossick, Head of Southeast Asia, JLL.
“A big draw for investors is also its rising office rents. Singapore’s prime office rents are expected to continue growing over the next few years, backed by robust demand for the technology, professional services and financial services sectors”, Fossick further added.
Driven in part by large-scale transactions, the office sector continues to account for the largest share of investment with nearly US$4.6 billion in acquisitions so far this year, and are likely to reach a new decade high in 2019.
According to JLL, property investment in Singapore nearly doubled in H1 2019 after a relatively subdued 2018. This is compared to US$3 billion transacted in 2018 and US$4.7 billion in 2017 respectively.
In the latest US$1.17 billion sales of DUO Tower and DUO Galleria, JLL acted as exclusive advisor on behalf of the seller M+S Pte. Ltd. Allianz Real Estate and Gaw Capital, partnered to acquire this iconic Grade-A office and retail asset which is located in the downtown Bugis area.
In June, Chevron House – a 32-storey office and retail building in the heart of the central business district – was sold to U.S. real estate fund AEW for US$0.75 billion, a 35 per cent increase in capital value from when it was purchased in 2017.
JLL is a leading professional services firm that specialises in real estate and investment management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
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