OUTLOOK
Source: blog.rentandreturns.com
COVID-19 IMPACT ON ASIA PACIFIC REAL ESTATE INVESTMENT IN FIRST HALF OF 2020
T
he full impact of the COVID-19 pandemic was felt deeper in Asia Pacific real estate markets in the second quarter of 2020 than the previous quarter, contributing to investment volumes and rental prices declining across most major commercial asset classes in the first half of the year. According to newly released data by JLL (NYSE: JLL), first half investment volumes in Asia Pacific declined by 32% year-on-year, with second quarter activity down by 39% year-on-year accelerating from a 26% drop in the first quarter. The decline in investment volumes continued as more economies introduced lockdowns and travel restrictions, further impacting investors’ short-term capital deployment plans. Singapore (-68%) and Hong Kong (-65%) registered the largest year-on-year investment declines in the second quarter, while drops in Australia (-58%), South Korea (-45%) and China (-15%) were offset by a resumption of activity in the latter parts of the second quarter. Investment activity in Japan (-20%) remained resilient due to transactions in the multi-family sector and strong domestic liquidity. “The sharp decline in deal activity in the second quarter is reflective of the lack of willing sellers and the general uncertainty that exists around market recovery. Liquidity remains very high, and we expect transaction activity is poised to rebound in the second half as economies further reopen and pricing expectations are adjusted in certain markets,” said 26 Building & Investment | www.b-i.biz
• Investment volumes in 1H decline 32% year-onyear, but healthy yield spreads mean appetite for assets remains high • Leasing markets subdued with some bright spots emerging
Source: iproperty.com.my
