• Most markets saw quarterly investment turnover decline as investors turned more cautious. Year-to-date transaction volume fell by 7% y-o-y to US$85 billion as investors in many markets shifted into wait-and-see mode.
  • China saw relatively subdued activity as demand from domestic capital was influenced by economic deleveraging. Investors in Hong Kong were cautious amid the wider expectation gap between buyers and sellers and the limited availability of investable assets.
  • Active markets included Australia, where Sydney and Brisbane recorded the completion of several major deals. Japan continued to enjoy strong investor demand, led by J-REITs, while Korea saw several big ticket transactions.
  • Together with the escalating U.S.-China trade conflict and rising cost of financing, the upward movement in the U.S. 10-year government bond yield is expected to encourage investors to be more conservative. Full-year transaction volume is expected to be lower than that in 2017.