Singapore tops Asian outbound real estate investment for third consecutive year

This corresponds to deals worth S $ 16.05 billion (US $ 12.1 billion) in 2020.

Outbound commercial real estate investment in Asia declined 37% year-over-year to S $ 39.8 billion (US $ 30 billion) in 2020 as restrictions on travel and site inspections hampered buying activity, the global commercial real estate services firm said CBRE.

Greg Hyland, head of Asia Pacific capital markets at CBRE, said Singapore investors have invested overseas because the pool of domestically available assets is relatively small.

Additionally, when it comes to overseas acquisitions, Singapore investors are generally seen as a sophisticated and savvy group who are used to investing offshore while being careful about where to invest in their search for what is best Hold risk -adjusted returns, “he added.

Top real estate investment destinations for Singapore investors in 2020 include Beijing, London and Seoul.

For the entire region, the United States was the primary destination for S $ 9.29 billion (US $ 7 billion) in capital outgoing.

Korea was reportedly the second largest source of outbound funds overall. It accounted for nearly half of Asia’s outbound investment, largely due to the lower cost of hedging the Korean won against the US dollar.

In third place is mainland China, which is underpinned by several major purchases in Australia. Mainland China’s foreign investment is likely to have rebounded slightly, but remains below historical highs.

Henry Chin, CBRE’s global head of investor thinking leadership and head of research for Asia Pacific, said there was an optimistic view that real estate investments will improve in the months ahead.

“Despite the weaker outbound investment volume in 2020, we are optimistic that real estate investments will pick up in the next 12 months. The CBRE Survey of Investor Intentions in Asia Pacific for 2021 found that 70% of investors in the region plan to buy assets overseas in 2021, suggesting a slight rebound in Asian outbound investment volume this year, ” he explained.

(US $ = 1.33 SGD)