Research
Asia Pacific Capital Tracker 3Q22: Fasten your seatbelts
Investment volumes softened for the third consecutive quarter on the back of limited deals in major markets and rapid currency depreciation
October 14, 2022
High-profile office transactions in Sydney and Melbourne fuelled a 15% surge in Australia鈥檚 Q3 volumes, while South Korea recorded US$6.4 billion with healthy activity in the office and logistics sector. But the slowdown in deals in major markets and听weakening Asian currencies saw the region鈥檚 investment volumes fall 29% year-on-year to US$28 billion.
听
- More evidence of听pricing adjustment听for non-core assets in South Korea and Australia
- Construction costs听were impacted by input from material, wage, and the rising cost of debt
- Rates听will stay higher for longer- no doubt. Floating rates are inching closer to fixed rates in some markets
- Dry powder听is shrinking for core, core plus.听Fundraising听activity concentrated in opportunistic strategies, drops off for value add
- Green听leases and certified stock having notable effect on assets, as illustrated thru trades
- Valuation dislocation:听REITs as a forward indicator for private assets
What are the key trends emerging this quarter? Which sectors are poised for further growth? Download our Capital Tracker 3Q22 for the latest sector and market insights to guide your investment strategies.
