Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

56% of APAC Real Estate Fund Managers Aim to Up Japan Exposure

2020/09/07 by Michael Cole Leave a Comment

Royal Parks ER Sasashima West big

This Nagoya apartment complex was one of multiple Japan deals by AXA Investment Managers this year

Safe is sexy for real estate investors in Asia Pacific this year, according to the results of a survey released this month, with the region’s most stable markets becoming targets for managers of property funds targetting the region.

Japan now stands out as the top destination for real estate fund managers in APAC, with 56 percent of survey respondents aiming to increase their exposure to the island nation’s property market by the end of 2021, according to the Reimagining Asia Pacific Investment Strategies report released by JLL last week.

Altus - AE Free Trial In-story Banner

The study, which was based on a poll of representatives of 38 investment firms active in the region regarding their intentions between now and the end of 2021, also showed Hong Kong to be the most feared market in Asia Pacific, with 18 percent of respondents intending to decrease their exposure to the chronically troubled city.

Exposure Intentions by Market

CountryIncreaseMaintainDecrease
Japan56%38%6%
Mainland China51%41%8%
Australia50%43%7%
South Korea44%55%1%
Singapore44%52%4%
India18%81%1%
Southeast Asia (excl SG)15%77%8%
Others4%89%7%
Hong Kong4%78%18%
Source: JLL

Some 80 percent of the organisations participating in the survey indicated that they manage assets of $20 billion or more, with another 13 percent looking after between $11 billion to $20 billion.

Among these mega-managers, mainland China ranked as the second-most favoured destination, with 51 percent saying that they would boost exposure to the market, and Australia ranked third with 50 percent targetting Aussie opportunities.

“Mainland China is one of the most popular investment destinations in Asia Pacific,” Roddy Allan, JLL’s chief research officer for Asia Pacific said in a statement. “In particular, larger investors with over $20 billion in assets under management appear to want greater exposure in the market.”

Allan noted that, in total, three-quarters of these hypescale investors plan to either increase or maintain their exposure to the mainland market.

Waiting for the Rebound

Among the money managers, Hong Kong was the only location in the region where more than 8 percent intended to lower their exposure, with both mainland China and Southeast Asia (excluding Singapore) coming in at the 8 percent level.

PF-Rody-Allan-flip

Roddy Allan, chief research officer, Asia Pacific, at JLL

That willingness to stay the course came despite only 1 percent of respondents indicating that they expected their 2020 returns to show improvement over their 2019 performance, while 64 percent said that returns would marginally deteriorate and another 24 percent expected significant deterioration.

Despite, or potentially because of, the disruption wrought by COVID-19 some 65 percent of the survey respondents expect to be net buyers in Asia Pacific this year, with 52 percent indicating they believe investment volume in the region will begin to recover during the first half of 2021.

The largest obstacle to resuming activity, according to the respondents, is the challenge of sorting out the current market conditions, with 43 percent citing “underwriting assumptions uncertainty” as the largest obstacle, and another 17 percent pointing to pricing uncertainty.

Alternatives Go Mainstream

With returns under threat and market trends still emerging, investors are also turning to safe asset classes this year, according to JLL’s research.

“Our interactions with clients reinforce the view that investors will continue to seek defensive locations and sectors where the rental collection experience has been positive,” said Stuart Crow, JLL’s CEO for capital markets in the region.

“In addition to Mainland China, Japan and Korea remain high on the preferences for clients, as do sectors such as multifamily, non-discretionary retail and logistics,” he added.

Overall, office continued its role as the mainstay for real estate fund managers with 88 percent of respondents indicating that they expected to increase their exposure to the sector.

Coming in close behind offices, however, was industrial, with 81 percent of the respondents saying that they would like to put more money into warehouse deals, and multi-family came next with 58 percent targetting apartment investments.

With tourism still looking bleak around Asia Pacific, 26 percent of respondents indicated that they planned to decrease their exposure to the hotel sector, while 44 percent said that they would join the move away from retail by lowering their activity in that segment.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Research & Policy Tagged With: daily-sp, Featured, JLL, research, weekly-sp

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

value-add forum 2021-03-30
Link REIT CEO George Hongchoy Says Sustainability Key to Boosting Returns
Multi-Family Investment in Japan Thumbnail
Japan’s Multi-Family Market Still Has Room to Run After Banner Year: MTD TV

More MTD TV Videos>>

People in the News

Gerald Yong CapitaLand
New Directors Named for Singapore’s SPH REIT After Cuscaden Takeover
jesline goh UOL
Jesline Goh Resigns as CIO of Singapore’s UOL as Developer Promotes Hotel Chief
Lee Hoon KIc
Asia Real Estate People in the News 2022-08-15
daigo Hirai BlackRock
Asia Real Estate People in the News 2022-08-08

More Industry Professionals>>

People in the News

New Directors Named for Singapore’s SPH REIT After Cuscaden Takeover

Gerald Yong CapitaLand

Following its takeover by Temasek Holdings-backed investment firm Cuscaden Peak on 30 June, the manager of SGX-listed … Read More>>

Jesline Goh Resigns as CIO of Singapore’s UOL as Developer Promotes Hotel Chief

jesline goh UOL

Jesline Goh is stepping down as chief investment and asset officer of Singaporean developer UOL Group after nearly five … Read More>>

Asia Real Estate People in the News 2022-08-15

Lee Hoon KIc

Senior personnel changes in Korea, Hong Kong and Singapore lead Mingtiandi’s roundup of HR moves from around the region … Read More>>

Asia Real Estate People in the News 2022-08-08

daigo Hirai BlackRock

BlackRock’s appointment of a new head of Japan real estate leads this week’s roundup of personnel moves from around the … Read More>>

More Industry Professionals>>

Latest Stories

Yang Guoqiang Country Garden
China’s Biggest Developer Country Garden Warns of 70% Profit Drop
fuwei-c-bridge-capital
Healthcare Investment Boss Said Buying Mansion in Singapore’s Bukit Timah For $33M
Gerald Yong CapitaLand
New Directors Named for Singapore’s SPH REIT After Cuscaden Takeover

Sponsored Features

Douglas Wu Fairland Holdings
How a Hong Kong Mall Repositioning Boosted Revenue by Focusing on Community
For Hong Kong’s Office Market, Border Reopening Holds Key to Unlocking Demand
Top 3 Trends Driving a Connected Experience in Commercial Real Estate

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.

  • This field is for validation purposes and should be left unchanged.