Asia Pacific Capital Tracker 2Q22: Moderation of deal activity

The tightening rate cycle and inflationary concerns led to a slowdown of direct real estate investment activity across the region, which fell 37% year-on-year to US$32.3 billion in Q2.

Among the hardest-hit was China, where investment volumes contracted by 61% year-on-year to US$5.8 billion on the back of pandemic lockdowns.

Japan’s lack of logistics transactions saw deal activity dip 8% year-on-year to a historic low of US$5.3 billion, while activity in Australia moderated by 52% year-on-year to end the quarter at US$4.9 billion. 

While appetite for assets remains strong, external factors are expected to prompt investors to rethink their capital deployment strategies for the remainder of 2022.

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