Real estate transaction volumes in the Asia-Pacific region are likely to take a dramatic jump in the latter half of the year, according to analysts at Jones Lang LaSalle (JLL). Volumes were up 38 per cent Q2 this year, on a quarterly basis, although this is still flat compared to last year’s figures. JLL analysts have forecast that the transaction rate will make a strong recovery in the upcoming months, and will hit close to the record volume of $126.8 billion set in 2013.
Stuart Crow, the head of JLL’s Asia Pacific capital markets commented that direct investment in commercial property in Asia Pacific has improved over traditional first quarter levels.
A single transaction stands out as being largely responsible for the pickup in transaction volume: the Canada Pension Plan Investment Board (CPPIB) and the Dexus Property Group, an Australian office landlord, acquired Australia’s Commonwealth Property Office Fund.
Along with this major transaction in Australia, Japan also accounted for the majority of the region’s commercial property volumes although this market is unlikely to match 2013’s figures, when sales increased by 69 per cent.
According to JLL, the slowdown is attributed to the consumption tax increase imposed in April. It brought forward several transactions to Q1 and encouraged a more tentative approach from potential investors.
Australian sales volumes were up seven per cent to US$7.8 billion, even though the market was more sluggish than expected.
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