X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SINGAPORE-According to Cushman & Wakefield’s quarterly investment report on Asia Pacific, significant growth is on the horizon. The sector of the world is already in the early to mid-cycle of recovery; far above other international markets.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.