Commercial real estate sales in Asia-Pacific down 39 per cent
Sep 12, 2011, 3:23 GMT
Bangkok - Commercial real estate sales in the Asia Pacific region totalled 9 billion dollars in the second quarter of 2011, a 39-per-cent drop compared with the previous three months, a company said Monday.
'The current lull witnessed in Asia is primarily the result of short-term weaker market sentiment and increased caution among investors,' said Nick Axford, head of Asia-Pacific research for international real estate company CB Richard Ellis Group Inc (CBRE).
CBRE attributed last quarter's decline in Asian commercial property sales to bearish sentiment among investors sparked by the March 11 earthquake and tsunami disaster in Japan and the worsening economic picture in the United States and Europe.
Although Asian real estate 'is relatively well placed to weather the current global volatility,' Axford said, 'the region is not immune from the issues affecting Europe and North America and we are keeping a close eye on how events unfolding elsewhere in the world are impacting Asia.'
While commercial property sales in Asia were down in the second quarter, they rose significantly in Pacific markets, specifically in Australia, the company said.
Australia accounted for 24 per cent of total investment in Asia-Pacific in the April-June period, with offshore investors showing particular interest in the Sydney office market, CBRE noted.
'In the Pacific, forecasts point to an improvement in economic growth over the next 12 months, although much depends on what happens in the global economy,' CBRE said.