APAC investment volume surges 99% to US$41b in Q2 2021

A quarter of the volume consists of large-ticket transactions of over US$1b.

According to a report by CBRE, APAC investment volume grew by 99% year-over-year in Q2 to US$41 billion and by 51% in H1 2021 to US$69 billion. Vaccination rates picked up in the region and investment activity largely returned to normal. 

“Assuming no large-scale COVID-19 resurgence later this year, 2021 likely will be a phenomenal year for commercial real estate investments based on the region’s economic performance.”

Here’s more from CBRE:

Large-ticket transactions greatly contributed to the recovery in Q2. Deals of US$1 billion or more accounted for 25% of the region’s investment volume. Additionally, cross-border transactions grew by 65% year-over-year in Q2. Mainland China investment volume (+117%) more than doubled year-over-year in Q2, partially driven by Brookfield’s US$1.4 billion portfolio purchase of prime shopping centers. India’s investment volume grew by 354% year-over-year in Q2, driven by Blackstone’s $700 million investment in industrial parks in emerging Indian cities like Hyderabad and Pune. Australia (+196%), Hong Kong SAR (+270%) and South Korea (+69%) also saw robust capital flows. 

On balance, investors preferred Tier I cities in the region, with Seoul (+56%), Beijing (+113%) and Melbourne (+48%) seeing significant investment volume growth in H1 2021 compared to the H1 average from 2015 to 2019. Indian markets like New Delhi and Bangalore have also seen sharply higher investment activity, particularly in the office sector.  

Retail investment accounted for 31% of APAC’s total investment volume in Q2, compared with a 10% Q2 average between 2015 and 2019. Australia and China were driven by strong office investment, with the SK Tower in Beijing selling for US$1.4 billion. Industrial assets remained highly sought after in the region, with Q2 investment volume totaling US$10.6 billion—the largest quarterly total on record. 

Download the full report here.