Asia Pacific Already Seeing Recovery

According to the International Monetary Fund forecast, China and India are expected to grow 9% and 6.4% respectively in 2010, in comparison to the 1.5% predicted growth of the US and the 0.3% growth foreseen for Europe.

"The divergence in fundamental lead growth in Asia vis-à-vis the rest of the world has never presented itself more strongly than it will in 2010," the report authors state.

As factual proof of Asia Pacific's rebounding economy, the sector saw investments in the office sector increase 48% in Q3 to $6.3 billion when compared to Q2. Of those deals, 78% were valued at more than $50 million. China, excluding Hong Kong, is accountable for 50% of total asset sales in Asia Pacific.

Investors are trending toward a flight for quality; pursuing deals that either have strong capital preservation or are growth oriented, according to the report. Cushman & Wakefield experts predict the total value of transactions in 2010 will exceed the 2008 numbers of $150 billion. In the first three quarters of 2009, Asia has seen $84 billion of investments across all property types.

Cushman & Wakefield experts have seen a slight leveling of the current bid-ask gaps, which have now reached a 12-month low. The adjustment is further proof that alignment is around the bend and purchasing will continue to accelerate.

The future is looking up for both buyers and sellers. "It is evident to us that Q4 2009 and well into 2010, will continue to present fantastic buy side opportunities. For sellers, this is as good a time as any as macro economic fundamentals improve and reduction in risk perception allows for more favorable debt financing terms making structuring more efficient."

The report was put together by Priyaranjan Kumar, regional director of the Capital Markets Group in Asia Pacific, as well as other experts in various markets throughout the region.