JLL: Commercial real estate investment in the Asia-Pacific region reached $38.8 billion in the third quarter, a 28% year-on-year increase.

Jones Lang LaSalle (JLL) data and analysis show that in the third quarter of 2024, commercial real estate investment in the Asia-Pacific region increased by 28% year-on-year to $38.8 billion, setting a new record for the highest quarterly investment since the start of the rate hike cycle in 2022, and achieving growth for four consecutive quarters. From the beginning of the year to date, the total commercial real estate investment in the Asia-Pacific region has reached $96.3 billion, an increase of 82% compared to the same period last year. In the first three quarters of this year, the total commercial transaction volume in Hong Kong was $31 billion, a 3% decrease year-on-year, with the investment amount in the third quarter reaching $13 billion, a 58% increase from the second quarter. In the Asia-Pacific market, except for residential properties, transaction volumes in all major real estate sectors have increased, with strong performance in cross-border investments, totaling $14.5 billion since the beginning of the year, a 6% increase compared to the same period last year. Japan remains the most active market in the Asia-Pacific region, with several large hotel asset portfolio acquisitions driven by record high tourist numbers, leading to a transaction volume of $8.4 billion in the third quarter. The Singapore market also performed well, with a transaction volume of $4.4 billion in the third quarter, 1.18 times higher than in the third quarter of 2023, mainly due to strong demand from institutional investors for industrial and retail assets. Chen Guozhang, head of the capital markets department at Jones Lang LaSalle (JLL) Hong Kong, stated that from the beginning of the year to date, transactions in industrial buildings and logistics centers in Hong Kong have been relatively active, while transactions in shops and offices have remained subdued. Hong Kong has cut interest rates twice following the United States, which has had a positive impact on the Hong Kong property investment market. It is expected that commercial property transactions will increase in the fourth quarter of this year, especially as the Hong Kong government introduces policies to encourage the conversion of commercial properties and hotels into student accommodations, leading to an expected increase in transactions for whole buildings and hotels.