Commercial properties investment volumes down 37.9% in H122

It posted $29.2b worth of investment in the first half of 2022.

The total investment of commercial properties fell to $29.2b from 37.9% in the first half (H1) of 2022, compared to the previous half, according to data from JLL.

Industrial properties are still in demand amongst institutional investors because of “defensive nature and higher yield.” These properties accounted for over 56% of total investment volume in H1 2022.

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Further, capital prices of prime warehouses grew 4.1% year-on-year in H1 2022, which also outperformed other property segments.

Another investment asset with high demand is hotels, especially for investors who want co-living or multi-family housing. Hotel asset sales went up 15% in H1 2022 from H2 last year.

Oscar Chan, who heads capital markets at JLL, said capital values for industrial properties will outperform and rise 5% to 10% but hotel sales will slow because the “availability of discounted stock has been exhausted."