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Opportunities remain as Q3/2019 got off to a promising start after a strong 1H/2019 that witnessed a number of high-profile transactions.
APAC hotel investment volume subdued in Q3
- Total Asia-Pacific hotel investment volume in Q3/2019 was US$2.4 billion across 79 transactions, down 8.9% quarter-on-quarter (QoQ). While North Asia markets maintained momentum, China and Hong Kong experienced significant downticks in investment volume, affecting the overall figures for the region. Although there was a decline in transaction activity this quarter, total investment volume in the first nine months of the year was up 24.4% compared to the same period in 2018.
- South Korea dominated as the most active market this quarter with a total volume of US$607.5 million across 24 transactions, accounting for 25.2% of Q3/2019 transaction activity in Asia Pacific.
- Japan maintained its solid pace with a number of high-quality transactions, recording US$545.3 million across 10 transactions.
- Following closely behind Japan, Australia recorded another busy quarter with transaction activity amounting to US$537.7 million across 27 transactions, accounting for 21% of total investment volume in the region during this quarter.
With a significant weight of capital targeting real estate in the region, investment activity is expected to remain healthy as deleveraging, fund expiries and the interest rate environment create new opportunities for investors in select markets.
Savills Research