Investment activity in Q3 2020 was led by Korea, which saw strong purchasing demand from local asset management firms. Other upbeat markets included Taiwan, which reported record high quarterly transaction volume driven by strong buying activity from insurance companies and end-user demand from manufacturers. Mainland China, Japan, Australia and Singapore all recorded slightly higher transaction volume this quarter.
Strong demand for logistics assets was reflected by robust quarterly investment turnover, which rose by 70% y-o-y to nearly US$7 billion. Active buyers included real estate funds, institutional investors and logistics developers. Data centres also attracted strong interest.
Foreign investors are surmounting difficulties caused by travel restrictions by leveraging local platforms and partners to source overseas investment opportunities. Cross border investment volume totaled US$7 billion this quarter, an increase of 45% q-o-q.
Although investors will continue to monitor potential acquisitions, most are in no rush to close deals. Some buyers are anticipating more attractive pricing when government relief measures wind down in early 2021.