SINGAPORE. – Asia Pacific was the only region globally to see growth in commercial real estate investment in the first quarter 2024, with investment volumes reaching $30.5 billion.
According to data and analysis by global real estate consulting firm JLL, commercial real estate investments rose by 13 percent year-on-year (YoY) in the first quarter of 2024, marking the second quarterly YoY increase after seven consecutive quarters of decreasing volumes.
The increase in investment volume comes amid global investors making major acquisitions, while institutional investors continue to deploy capital. North Asia led the growth of the region, with Japan emerging as Asia Pacific’s most active market, with an investment of $11.5 billion, a 29 percent YoY increase, across the quarter. Domestic buyers focused on core assets in Japan, while foreign capital demonstrated interest in opportunistic investments. Overseas investors remained interested in Japan, with large acquisitions made in the office, logistics and industrial sectors, due to its loose financial conditions, positive yield spreads, and weak currency.
South Korea attracted $4.3 billion in investments, a significant 73 percent YoY increase, with office dominating the sector for investment given its stable fundamentals, low vacancy rates and bullish leashing demand. Singapore ($2.2 billion) recorded a 14 percent YoY growth in investments owed to capital allocation pivoting towards retail assets, which have a positive rental outlook and yield spreads.
