Tiny Singapore Surpasses Giant China in Race to Acquire Overseas Real Estate in Some Markets: Juwai IQI | News

KUALA LUMPUR, Malaysia, August 25, 2021 / PRNewswire-PRWeb / – Though tiny Singapore The GDP is about 2.3% the size of China $ 14.7 trillion In the economy, investors from the much smaller country invested around a third more in Australian residential and commercial real estate in both fiscal years 2018-2019 and 2019-2020. We use the latest data from Australia Foreign Investment Review Board (“FIRB”) to shed light on the change and its implications.

In the two years in between June 2018 and July 2020, Australia The Foreign Investment Review Board approved Singapore investors to acquire A $ 19.3 billion worth of Australian real estate, while Chinese companies received approval for only A $ 13.2 billion of those investments. The gap in Singapore The favor was A $ 6.1 billion.

Singapore Approved Australian real estate investment just achieved $ 5 billion 2016-17. It quickly jumped to A $ 8 billion the following year and then rose to more than A $ 9 billion in the last two years, 2018-19 and 2019-20. Today, at 17%, it makes up a larger proportion than ever before.

On the other hand, China The share of annual investment in Australian real estate skyrocketed between 2012 and 2018. Today, however, Chinese investments have actually declined Singapore investments have increased. China accounted for 26% of foreign real estate investment in Australia 2015-16. Today, with 13% of the total, China Proportion is still significant, but below its recent highs.

The investment flows in the two countries are structured differently.

Investments in Singapore are aimed at large investors buying commercial real estate and development sites. Chinese investments today are predominantly single buyers buying residential units.

Examples of Singaporean investors are Singapore Sovereign wealth fund GIC, Singapore Press Holdings, and Singaporean listed developers Wing Tai and Wee Hur, all of which acquired significant Australian assets in 2019-2020.

Cross-industry, not just in the real estate sector, Singapore is the third largest source of planned investments in Australia by value in the period 2019-20. It follows The United States and Japan and leads Canada and the United Kingdom. China is sixth.

For the past ten years or so China is still by far the largest investor overall. The investment approved by China amounts to approximately A $ 126 billion as of 2009-10. That’s more than double the A $ 56 billion Singaporeans invested over the same period.

Media contact

Dave Platter, Juwai IQI, +61432814888, [email protected]