Foreign Property News | Posted by Shwe Zin Win
Japanese apartments are now considered as the most sought-after asset class this year.
Since the onslaught of the pandemic, warehouses nabbed the property investment spotlight across Asia Pacific. But since major businesses began to venture into more traditional asset classes in the first half of the year, Mingtiandi revealed that the transactions for rental apartments more than tripled, which enabled it to reclaim its glory.
Among the major acquisitions were conducted by Allianz Insurance, AXA Investment Management and Blackstone that helped Japan amass some USD4.9 billion in rental apartment investments from January to June, according to a report by Real Capital Analytics (RCA).
In the first half of 2020, the influx of cash into the multi-family assets of Japan drove investments in rental apartments in Asia Pacific to USD6.5 billion, a 157 percent growth compared to the same period a year before.
In that same period, however, transactions in the industrial sector declined by four percent in the region, while the volume of office deals dropped by 44 percent, added RCA.
“There has been a continued trend of institutional and core investors seeking exposure to the Japanese residential sectors, given the stability of income and the relative high cash-on-cash yields,” said Stuart Crow, the chief executive at JLL APAC.
The recently-published real estate investor survey conducted by JLL revealed that the real estate transactional activity in Asia Pacific will bounce back in the first half of 2021 as investors contemplate the current state of the market because of the COVID-19 pandemic.
Uncertainties with the environment and the economy caused by the outbreak have made it more difficult to deploy capital, which drove investors to shift their strategies in the region, concentrating more on core geographies and further expediting pre-COVID trends.
Ref: apa
