Record year for Asia-Pacific investment

Record year for Asia-Pacific investmentResearch by DTZ shows that commercial real estate investment in the Asia-Pacific reached US$101 billion in 2014, the first time that full-year annual volumes have exceeded US$100 billion.That figure represented a modest increase of 3 per cent on 2013. The report also revealed the region’s strong finish in 2014, with commercial real estate investment (excluding land sales) in the Asia-Pacific reaching US$27 billion in Q4, up 13 per cent from Q3.Japan and Australia together accounted for two-thirds of the regional total. Annual volumes were driven by Japan, which led the region at US$36 billion (up 3 per cent year-on-year). Australia increased its volume substantially to US$28 billion, up 38 per cent year-on-year. Singapore and China performed poorly by comparison, recording volumes of US$7.8 billion and US$1.9 billion, respectively.According to DTZ, cross-border capital in the Asia-Pacific totaled US$24 billion, a 63 per cent increase on 2013.Australia was the main beneficiary of this cross-border capital flow. In Q4, US$2.6 billion of offshore capital was directed at Australia, bringing the annual amount to US$10.6 billion. DTZ said offshore investors continue to look to Australian markets for their combination of liquidity, good relative value, transparency and stability. Japan also received significant cross-border capital of US$5.6 billion in 2014.DTZ expects volumes to be sustained in 2015, assisted by the significant investment dollars flooding the region. Japan and Australia remain the most attractive markets in the region and are likely to see further yield compression as a result.