Commercial real estate investment in the Asia Pacific contracted 26% y-o-y in 1Q2020, as the Covid-19 pandemic impacted the flow of capital into many industries and asset classes. According to data by JLL, investment transaction volumes in the region came in at US$34 billion during this period.

Commercial property investments in Singapore, Hong Kong, and mainland China were the most adversely affected last quarter, with activity declining by at least 60% y-o-y. However, investment activity in South Korea and Japan was similar or slightly higher compared to the same period a year ago.

In Singapore, commercial investment volumes declined by 68% y-o-y last quarter. Investors spent more time on asset management and paused capital deployment, and their caution was influenced by heightened recession risks and the lack of flagship assets on the market.

Recent activity includes Alibaba’s acquisition of a 50% stake in Singapore’s AXA Tower for $1.7 billion from a Perennial-led consortium of investors. It is one of the biggest property deals the Chinese giant has made outside China.

Source: Edge Property, 11 May 2020