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Despite concerns over monetary tightening measures, global direct commercial property investment rose 16 percent quarter-on-quarter in Q2 2013 to US$121 billion (S$154 billion) as investors look to diversify their portfolio, according to a report from Jones Lang LaSalle.
Over the last half year, transaction volumes hit US$225 billion (S$287 billion) as all three regions – Americas, Europe and Asia Pacific reported gains.
Meanwhile, cross-border investment activity rose 13 percent from 1H 2012 to US$71 billion (S$90.6 billion) in 1H 2013. Asia Pacific saw the highest level of overseas investment, with US$8.5 billion (S$10.8 billion) of capital being channelled into the US and European commercial property markets.
Growth of inter-regional investment in the region was primarily driven by China and South Korea, where overseas buying activity rose by more than twice during the first half of 2013.
“We continue to see new capital emerge from Asia Pacific, as investors look to diversify their portfolios into prime global cities such as New York and London,” said Alistair Meadows, Director for International Capital Group Asia Pacific at Jones Lang LaSalle.
Moving forward, the property consultancy “expects emerging market institutional capital to be a major theme within commercial investment markets for many years to come”.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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