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Asia Pacific Cap Rates Snapshot | Q1 2022

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Demand for industrial assets across Asia Pacific continues to outstrip supply; investors conservative toward retail market.


Eight out of the 20 cities in our survey across Asia Pacific (APAC) saw quarter-on-quarter (QOQ) movements.

Demand for industrial assets across APAC continues to outstrip supply, which has seen further yield compression in this sector, while investors remain conservative toward the retail market. Yield compression in the office sector was seen in Australia.

Key Highlights in Q1 2022:


  • No major transactions were recorded for Q1 in Beijing and Shanghai for both the retail and office sectors. In contrast, investors continue to deploy capital into logistics facilities, supporting demand for this asset class in China. The mobility restrictions in Shanghai since the latter part of Q1 have impacted normal business activities, but have also spurred logistics demand to new heights. The logistics market will continue to draw strong investor interest.

  • Office transactions in Sydney and Brisbane have continued to show cap rate compression, and this reaffirmed the attractiveness of prime assets in the market.

  • High levels of competition for prime grade assets in Auckland have mitigated the impact of higher interest rates with yields generally running flat.

  • Interest remains strong in industrial assets in Singapore and capital values have been rising faster than rents, resulting in cap rate compression.

  • The overall movement in cap rates in Bengaluru and Mumbai was within a narrow range. Investors generally remain conservative across different sectors with an improvement in sentiment towards the industrial segment, especially for warehouse and data centre

Download the latest APAC Cap Rates Snapshot | Q1 2022 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 | Q1 2022

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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.

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