APAC high street retail investment volumes up 8% to USD2.3b in Q1 | Real Estate Asia
, APAC

APAC high street retail investment volumes up 8% to USD2.3b in Q1

But the overall retail sector is still in the woods, says JLL.

The retail investment activity in Asia Pacific remained muted, recording USD 5.3 bn in 1Q23 according to JLL, USD 2.2 bn shy of the USD 7.5 bn quarterly average over the last five years. 

“In Q1, large scale shopping mall trades nearly vanished in the region, except Singapore. Shopping mall sentiment stayed soft, faced with a slower leasing market and subpar discretionary spending,” the analyst said in a report.

Here’s more from JLL:

Inflationary concerns and the shift to e-commerce remain another challenge to retailers’ profitability. Some markets are still striving to drive down bloated vacancy. Investors will likely sit out until fundamentals recover. 

On the contrary, high street volumes remain healthy at USD 2.3 bn in Q1, an 8% YoY rise. Investors bullish on high street and shop houses thanks to the tourism revival. Retail assets are less likely to face repricing risk compared to other sectors due to high cash-on-cash yield. 

• South Korea: Investors grow wary of deteriorating hypermarket performance, leading to limited liquidity for the asset class. 

• Australia: Investors on the side lines amid slower shopping mall performance. Regional/global funds are still on the lookout for value add opportunities. 

• Hong Kong: Most deals on high street retail are changing hands among private investors. Some long term capital keen on income resilient/neighbourhood retail assets. 

• Japan: Continued lack of shopping mall trades. Lately, J-reits and developers chased high street and standalone retail assets to access stable income streams. 

• China: Limited liquidity despite reopening momentum. Clearer upward trends in rental growth and occupancy are needed to bring back investor confidence. 

• Singapore: Many mall operators reported upbeat FY2022 performance, demonstrating further YoY improved occupancy as well as 4-8% upside rental revision at renewal. 

 

Join Real Estate Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

How Metland Indonesia deals with weaker residential purchasing power
The real estate firm continues to expand with residences that are attractive to consumers because of pricing, the ‘growing house’ concept, and sustainable features.

Event News

Event News

Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.
Real Estate Asia Awards 2023 Winner: Henderson Land Development Company Limited
Henderson Land Development Company Limited wins big at the Real Estate Asia Awards 2023 taking home 3 notable accolades, the Developer of the Year, Mixed-Use Development of the Year, and Residential Development of the Year awards for Hong Kong.