Commercial real estate investment in Asia Pacific has hit a new first-quarter high, bypassing 2022 levels, according to research by real estate consulting firm JLL.
The company's data showed commercial investments totalled US$36.3 billion last quarter, rising by 20% year-on-year, and marking the sixth consecutive quarter of growth, despite global trade unrest.
All property sectors saw higher investment, except industrial & logistics.
Overseas investors were flocking most to office, logistics, and living assets, with global capital sources making large investments in office and retail, and Singaporean investors making moves in office, logistics and overseas hotel assets.
Japan also kept its top spot in the region for receiving foreign investments, with a 20% year-on-year increase in commercial real estate investments, the highest Q1 level in five years for the nation.
“The continued growth in Asia Pacific commercial real estate investment is a testament to the region's strong fundamentals and attractiveness to global capital," adds Stuart Crow, CEO, Asia Pacific Capital Markets, JLL.
“While short-term tariff-induced market volatility might give investors cause for temporary pause on large deal activity, property investors with a long-term horizon, looking for stable income streams and higher yields will continue to allocate into this resilient asset class as it remains relatively insulated from short-term fluctuations.”
