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News Release

Shanghai

Asia Pacific commercial real estate markets will continue to grow in 2014

Year-end outlook from Jones Lang LaSalle predicts on-going growth in transaction volumes across the region next year


Direct investment into commercial real estate markets in Asia Pacific in 2014 is set to exceed this year’s transaction volumes, already the strongest year since before the Global Financial Crisis (GFC), according to Jones Lang LaSalle. The firm’s outlook predicts that direct investment into commercial real estate is forecast to reach $130bn in 2014, outpacing the $120bn prediction for year-end 2013 and firmly putting the region back to pre-GCF volumes.

Stuart Crow, Head of Asia Pacific Capital Markets, commented: “As we look towards next year, we expect the momentum we have seen throughout 2013 to continue, as new sources of global capital increase equity in the region. As a result we will see investors move further up the risk curve in search of higher yield, increasing capital inflows into opportunistic and alternative markets such as Vietnam and Indonesia.”

He continued: “As more money becomes available within the region and investors are faced with the on-going challenge of chasing assets, joint ventures development deals and will gain more popularity as an attractive option for foreigners looking to gain access to the region’s commercial real estate markets. A more positive rental outlook will drive development in core markets with even larger deals than we have seen to date, likely to complete next year. 

“Given the robust pipeline, increased equity and unrelenting demand, we remain positive in our outlook for 2014 and, at this early stage, expect transaction volumes to exceed our predictions for year-end 2013.”

Anthony Couse, Managing Director in Shanghai and Head of China Capital Markets, Jones Lang LaSalle said: “We continue to see increasing liquidity in the China market and anticipate that transaction volume will continue to grow in 2014, with strong demand from both domestic and international investors. While Tier 1 cities will remain the focus, we expect to see a growing number of deals in Tier 2 markets as an increasing number of developers look to dispose of assets.”