Cap rates for the Industrial sector continue to see more movement than Office and Retail, on heightened market activity.
In Q2 2021, only seven of the 21 cities surveyed across Asia Pacific have seen quarter-on-quarter (QOQ) movements.
Industrial has once again been the most active sector, primarily driven by the logistics and warehousing markets. We expect this to continue through 2021, while anticipating increased activity in the Oﬃce and Retail sectors.
Key Highlights in Q2 2021:
- The market with the sharpest movements was Seoul, on the back of intense competition for investment assets, particularly in the Industrial sector.
- In Beijing and Shanghai, we see a good sign of recovery from COVID-19. Some retail deals in Beijing are expected to be completed in the near future, leading to a downward movement of QOQ cap rates. On the Industrial front, logistics continues to be relatively active over the past quarters.
- The Australia investment market has been active over the last quarter, however, no significant fluctuations in cap rates were noted.