Asia Pacific property transaction volumes have been climbing since early 2009, although volumes slipped 23 percent quarter-on-quarter to US$21.4 billion in the first quarter this year, according to a report released by the Asia Pacific Real Estate Association (APREA) and Real Capital Analytics (RCA).
“All major markets in Asia experienced this fall in transaction volumes in the last quarter, with the exception of Japan where the volume actually increased by 122 percent. The majority of the transactions are coming from Japan, China, Hong Kong and Singapore,” said Peter Mitchell, CEO of APREA.
“However, the overall clear trend over the last two years is the substantial increase in transaction volumes in Asia and the increasing activity amongst domestic players and the correspondingly diminishing level of cross-border activity.”
Global transaction volumes declined by 31 percent in the first quarter. However, the total transaction volume was the second highest since Q3 2008. Asia Pacific comprised 22.4 percent of the total global transaction volumes, an increase from 15 percent in Q4 2010.
All regional sectors saw a drop in transaction volumes, except for residential apartment sales, which experienced an increase of 10 percent.
The report said that the movements in Asia Pacific ceiling rates were mixed over the quarter with office, retail and apartment ceiling rates indicating signs of moderation. Industrial and mainly hotel ceiling rates revealed signs of tightening.
The first quarter of this year also saw a marked decline in cross-border acquisition transactions, both intra-Asia Pacific and from outside the region.
Cross-border transaction activity has reduced significantly since Q3 2008 and the previous quarter’s level was the lowest since RCA started recording Asia Pacific transaction data over the past four years. Domestic players continue to lead, as buyers (91 percent) and sellers (73 percent).
The report also noted several major transactions that took place early this year, including Capital Square in Singapore, The Centre in Shanghai, The Fifth Square in Beijing and Otemachi PAL in Japan.
To contact the journalist, you may send your message to editor@propertyguru.com.sg