- Opportunities are starting to emerge as the regional economies recover gradually from the pandemic. Most, if not all are expected to report positive year-on-year growth from the first half of next year.
- Asia Pacific real estate investment volumes into income-producing properties saw only a small decline of 2.4% QoQ in the second quarter, and the industrial sector is leading the comeback with a large number of data centre portfolio deals in the pipeline.
- Office vacancies have begun to trend up, although increases over pre-COVID levels have so far been muted.
- Travel restrictions have been particularly harmful for cross border trade, tourism and capital flows, but closely monitored ‘air bridges’ are opening up for business travelers.
- China had an active second quarter in terms of deal volume. Elsewhere, Japan attracted a significant amount of cross-border capital from both the US and Europe, and South Korea posted a substantial number of smaller deals with more under negotiation presaging an active second half.
A mid-year regional roundup - Opportunities ahead
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GRAPH 1: COVID-19 Daily Infections (Including China and India), 23rd January to 4th August 2020