Cross-border investment in the Asia Pacific (APAC) region rose 125% year on year in the final quarter of last year.
Research by CBRE found that the region’s office sector was the main focus for investors as cross-border investment in the last three months topped $10.2bn (€9.1bn).
CBRE said total turnover in the quarter was $30.8bn.
Strong investment activity by institutional investors and newly-raised property funds contributed to the boost in investment, the advisory firm said.
Japan and Australia saw the most investment, with strong growth in New Zealand due to an increase in institutional acquisitions.
Investment in China was driven by softer asking prices, CBRE said.
Henry Chin, CBRE head of research for Asia Pacific, said investment in China and India had improved as a consequence of economic growth in the two countries, including ”liberalising interest rates in the former, and more measures being put in place by the government to boost foreign direct investment in the latter”.
Chin said CBRE expects ”another solid performance for investment activities in APAC, driven by strong investor appetite and adequate debt financing”.
”Continued economic growth, alongside favourable demographic and wealth factors, will continue to drive APAC’s real estate fundamentals, while the recent steep decline in energy prices has reduced the pressure for short-term interest rate hikes, further supporting the regional real estate market,” Chin said.
South Korea saw the most significant decrease quarter-on-quarter, due to the distorting effects of the previous quarter’s largest-ever commercial real estate transaction in Asia Pacific—a $10bn acquisition of the KEPCO headquarters in Seoul by Hyundai Motor Company and KIA Motors.
CBRE said logistics continues to be a “hot sector”, with new logistics supply this year expected to be 50% higher than the five-year historical average.