In spite of the negative media headlines which tarnished much of the region through 2013 and influenced the perceptions of some investors, last year proved to be another strong one in the real estate investment markets of Asia Pacific. With most of the 2013 end year data now in, we can observe some of the broad trends which characterized the investment environment here. Led predominantly by local and intra-regional capital, record volumes of transactions were made last year. Retail was the only sector to undergo a notable drop in transaction volume, no doubt due to lack of stock given that the larger prime assets are generally coveted for their defensive nature and therefore less likely to change hands. Per our predictions in 2012, last year turned out to be a strong one for China's residential market as first home buyers and upgraders enjoyed a climate which sidelined the speculators and thus solid volume and price growth were recorded. Total return performances for commercial property markets were also attractive, albeit with Japan lagging the rebound of other markets. Japan's capital values in the prime markets have, however, surged ahead of anticipated income growth.
Source : CBRE Global Investors