According to the latest survey released by global real estate consulting firm JLL on March 30, China still remains the top real estate investment destination in the Asia-Pacific region.
And specifically, the real estate market of Asia's leading economy stands out with segments like logistics, residential rental and business premises. In which, warehouses as well as business premises in big cities are the most popular assets.
China as well as Japan, Korea, Australia and Singapore enter the top 5 countries in Asia for real estate investment, according to the report on investor habits in the region conducted by JLL.
“China continues to rank high among the top investment destinations in the Asia-Pacific region. This once again confirms the confidence of investors in this market. Logistics, residential rental and alternative properties are important segments targeted by investors in the China market. The competition here is becoming more and more fierce.” said Eric Pang, head of capital markets at JLL China.
With the support of policies being eased and capital from investors, some fields especially related to the real estate industry such as life sciences, smart manufacturing and new generation information technology are developing rapidly in China, attracting many attention and capital from investors in business zones.
This statement is supported by a survey conducted by JLL of CEOs from 37 major investment companies in the region and around the world, who are managing assets worth more than 2 trillion USD.
Despite strong support when 9 out of 10 respondents said they would pour more capital into the Asia-Pacific real estate market in 2022, investors still see the need to diversify assets in the portfolio to reduce risk when the rate of competition increases.
JLL also said many investors plan to diversify, making properties in logistics, rental housing, offices and other areas their target this year.
Stuart Crow, JLL Asia Pacific member of the board of directors, said: “Competition rates will emerge as one of the themes that will shape the Asia-Pacific commercial real estate market in 2022. Despite the growing volatility in global stock markets, we see competition continuing to increase in the real estate industry. The lack of supply leads many investors to focus on platform mergers and acquisitions.”
Logistics will continue to attract more capital this year, with 9 out of 10 respondents planning to step up investment compared to 2021. Meanwhile, housing market ranked as the second most attractive sector after logistics, with 7 out of 10 investors looking to increase capital inflows.
Finally, office leasing will still be a core area for many investors, with 6 out of 10 respondents saying they will accelerate transactions this year.
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