Global direct real estate investment up 7%

Global direct real estate investment volumes rose 7 per cent on-quarter in the second quarter to hit over US$101 billion.

This is according to research findings from Jones Lang LaSalle, which added that on a year-on-year basis, the investment volumes jumped a staggering 47 per cent.

However, in Asia Pacific, Jones Lang said there was a sizable on-quarter fall of 30 per cent in volumes to US$18.5 billion.

It blamed the fall on the natural disasters in Japan, the region’s largest property investment market, which further worsened a seasonal slowdown.

Jones Lang said healthy markets elsewhere in the region, including strong growth in Australia and steady levels of activity in China and Hong Kong, failed to make up for the shortfall.

Going forward, Jones Lang LaSalle’s global capital markets research director Paul Guest said he forecast a further US$240 billion of transactions in the second half.

This will be on the back of Japan rebounding from the March natural disasters, and additional bank products coming up for sale in Europe and the United States.

Overall, Jones Lang expects full-year volumes to reach US$440 billion.

Source : Channel NewsAsia – 13 Jul 2011

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