‘Strongest showing’ on record for APAC residential investment, says RCA
Investments in income-producing properties amounted to US$101.9 billion ($138 billion) in the first nine months of 2017, according to Real Capital Analytics’ 3Q2017 Asia Pacific Capital Trends Report. This is on the back of the “strongest showing for residential investment on record”, says Petra Blazkova, senior director of analytics for Asia Pacific at RCA.
Blazkova attributed the strong performance of residential investment to “a lack of suitable assets” with prices that matched buyers’ expectations in the office sector. “This has persuaded some investors to diversify into other sectors of real estate,” says Blazkova.
According to the report, sales of rental apartments to commercial buyers in the first three quarters of 2017 increased by 73% y-o-y to US$14.5 billion, driven by demand for apartment blocks in China and Singapore.
In Singapore, acquisition of residential buildings in the first nine months of 2017 increased almost seven-fold y-o-y to $4.6 billion. This accounted for 37% of total investment volume in the country.
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