Stay Informed with Our Weekly Newsletter: Top Investment Targets in Early 2024
The Asia Pacific region has emerged as a lucrative destination for commercial real estate investment in early 2024, with Japan, South Korea, and Singapore topping the charts as investment targets. According to new data from JLL, investments in the region reached $30.5 billion in the first quarter of 2024, marking a 13% increase year-over-year.
Japan led the pack with $11.5 billion in investments, a 29% YoY increase, driven by both domestic and international investors targeting core assets and opportunistic ventures. South Korea saw a significant uptick in investment at $4.3 billion, a 73% YoY increase, largely in the office sector. Singapore also experienced a rise in investments at $2.2 billion, up 14% YoY, particularly in the retail sector.
However, Hong Kong faced a sharp decline in investment volumes, dropping 54% YoY to $0.7 billion, attributed to a notable transaction involving a local developer selling a neighborhood shopping center.
Stuart Crow, CEO of Asia Pacific Capital Markets at JLL, commented on the trend, stating, “The first quarter reflects a continued appetite from investors looking to capitalize on Asia Pacific’s strong economic fundamentals and attractive pricing opportunities across markets and asset classes.”
While the office sector remained the most engaged, investments in logistics and industrial sectors grew by 36% to $7.8 billion, and retail sectors grew by 8% to $5.7 billion YoY. Australia, mainland China, and Hong Kong reported declines in investment volumes, with Hong Kong facing the most significant decrease at 54% YoY.
Pamela Ambler, Head of Investor Intelligence, Asia Pacific at JLL, highlighted the influence of U.S. economic strength on sentiment and investment activity in the region, stating, “Uncertainty surrounding interest rates continues to influence investment activity in Asia Pacific, but we have seen a partial rebound and recovery in 2024 as markets recalibrate their expectations.”
Overall, the Asia Pacific region presents a promising landscape for commercial real estate investment in early 2024, with various markets offering attractive opportunities for both domestic and international investors.
