Southeast Asia continues to see upbeat investment sentiment with Thailand seeing real estate owners inject assets into property funds while overall commercial real estate transaction volume in Asia Pacific declined by 11% q-o-q to US$19.2 billion after an unusually strong Q1 2013.
The market remained active and the quarterly total was in line with volumes recorded last year, according to the latest Asia Pacific Capital Market View report published by CBRE, a leading property consultancy firm. Active markets were led by Japan although transaction volume fell by almost 50% q-o-q after surging in Q1, 2013. Other upbeat markets included Australia, Malaysia, New Zealand, Singapore and South Korea, which all recorded a q-o-q increase in investment turnover.
Comparatively subdued markets included Hong Kong, where the imposition of double stamp duty resulted in the exit of speculators from the market. Taiwan was also quiet as domestic insurance firms remained inactive following the rise in minimum yield requirements on commercial property introduced in November 2012. China also recorded a decline in investment volume by 22% q-o-q but market sentiment remained positive.