Asia Pacific Capital Tracker Q3 2024: From defense to offense

Asia Pacific investment volumes staged a comeback in Q3 2024, reaching US$38.8 billion, a robust 82% increase year-on-year (YoY). This marks the fourth consecutive quarter of annualized growth, with year-to-date (YTD) volume hitting US$96.3 billion, up 28% YoY. Most major property sectors recorded increases in transaction volume, signaling a broad-based recovery in the region's real estate markets.

Cross-border activity returned with a vengeance as offshore capital favored offices as the preferred asset class. Cost of debt eased since the start of the year in all major markets except Japan and China. While BOJs normalizing policy pushes risk free rate higher, accommodative spreads remain across sectors. Meanwhile, stimulus measures in China have provided a glimmer of hope in revitalizing retail.

Korea saw the return of mega office deals and foreign buyers made a beeline for Seoul logistics and industrials. Sentiment improved significantly in Australia with third party capital gaining greater conviction around outlook and market entry. Strata-titled sales by private investors continue to dominate Singapore, and the market became a poster child for executing a life sciences platform. 

As investors adapt to the evolving economic landscape, will the momentum in Asia Pacific’s real estate markets continue into next year?

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