Monday, December 21, 2009

Asia Pacific commercial property sales to rise in 2010

* 2009 Apac investment sales US$67b, up 22% from 2008
* Q4 2009 sales US$21.6b, down 9% from Q3

Investment sales in the Asia Pacific region’s commercial property market will keep rising in 2010, buoyed by returning economic growth and a stable banking system, global property advisor DTZ said on Monday.

Deal activity in the region totalled US$67 billion in 2009, up 22 per cent on 2008. On a quarter-by-quarter basis this marked a return to 2007 levels, DTZ said, adding fourth-quarter volumes were US$21.6 billion, down 9 per cent year-on-year.

‘Despite the fall in activity over the (fourth) quarter, we expect the upward annual trend in activity to continue into 2010,’ said David Green-Morgan, head of DTZ Asia Pacific Research, in a report.

He said this would be partially driven by economic growth returning to the majority of economies in the region, and the relatively stable banking system, which would ‘help to stimulate lending together with improving institutional allocations’.

China, Australia and Japan were the most active markets within the region, accounting for 80 per cent of fourth-quarter investment sales volumes.

Growth in the Asia Pacific commercial property market in 2009 stands in contrast to Europe, which saw investment sales more than halve in 2009 to US$112 billion, from US$53 billion.

Source: Business Times, 21 Dec 2009

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