Skip to main content Skip to footer

Asia Pacific Cap Rates Snapshot | Q3 2021

Download Report
Colliers Valuation and Advisory - APAC Cap Rates Q3 2021

Cap rates for Australia sees more movement than other Asia countries, on heightened market activity.


In Q3 2021,  we noticed 10 of the 21 cities surveyed across Asia Pacific (APAC) saw quarter-on-quarter (QOQ) movements.

Australia markets experienced more cap rates movement and transactions in the previous quarter, especially in the industrial and logistics sector. More movement is expected in Asian cities once there is more clarity on the future financial situation of the Chinese property developer, Evergrande.

Key Highlights in Q3 2021:

  • The sharpest movements have been in Australia's industrial and logistics sector, where cap rates have fallen by up to 0.6 percentage point (pp) QOQ. This cap rate compression reflects very strong demand for this asset class both in Australia and globally.

  • In Seoul, logistics cap rates have likewise fallen 0.5pp to the low 4% range, reflecting demand for warehouse assets in a market which has been one of the top three investment centres in APAC so far in 2021. With ample liquidity and limited outbound investment opportunities, cap rates in South Korea may drop further, into the 3-4% range.

  • Cap rates have been broadly flat in Asia cities, including those in China, where it is still seems too early to assess the impact of the financial situation of property developer Evergrande as well as broader stresses in the residential sector on commercial property asset values.

Download the latest APAC Cap Rates | Q3 2021 below. For more real estate advisory insights across Asia Pacific, reach out to our experts CK Lau and Dwight Hillier.


Asia Pacific Cap Rates Snapshot | Q3 2021

Download Report
Related Experts

Dwight Hillier

Managing Director | Valuation & Advisory Services, Strategic Advisory & Healthcare & Retirement Living

Sydney

I am responsible for the oversight and management of Valuation & Advisory Services; Strategic Advisory & Healthcare & Retirement Living  businesses in Australia.  Ensuring Colliers remains best in class providers in their respective markets. 

COMPANY EXPERIENCE
Managing Director, Valuation & Advisory Services 2013 - Present
National Director, CBD Commercial Valuation, Sydney CBD Office 2006 - 2013
State Director, Consultancy and Valuation, Sydney CBD Office 2003 - 2006
Associate Director, Sydney CBD Office 2002 - 2003
Senior Valuer, Sydney CBD Office 1998 - 1999
Valuer, Sydney West Office 1995 – 1998

PROFESSIONAL ACCOMPLISHMENTS | OFFICE VALUATION & ADVISORY

Some of the more prominent clients that I regularly undertake national valuation appointments from include The GPT Group, AMP Capital Investors, DEXUS, Brookfield, and Lendlease.

Some of my more recent valuation instructions of Premium and A grade commercial office assets undertaken are as follows:-

‘Governor Phillip’ & ‘Governor Macquarie Towers’, 1 Farrer Place, Sydney
‘RBS Tower @ Aurora Place’, 88 Phillip Street, Sydney
‘Darling Park’, 201 Sussex Street, Sydney
‘Grosvenor Place’, 225 George Street, Sydney
1 Bligh Street, Sydney
120 Collins Street, Melbourne
530 Collins Street, Melbourne
8 Exhibition Street, Melbourne
‘Bourke Place’, 600 Bourke Street, Melbourne
One One One Eagle Street, Brisbane
1 William Street, Brisbane
Central Plaza I, II & III, Brisbane
‘Bankwest Tower’, 108 St Georges Terrace, Perth
‘Brookfield Place', 125 St Georges Terrace, Perth
‘Ernst & Young Centre’, 12 Mounts Bay Road, Perth

PRIOR EXPERIENCE

Prior to joining Colliers, I worked within the Research Department of the Property Council of Australia (PCA), then with a boutique firm of Valuers & Land Economists, where I was involved in the valuation of residential property predominantly for first mortgage security purposes, as well as commercial and retail rental advice.

View expert