Asian investors remain confident in the UK despite the many unanswered questions and uncertainty surrounding Brexit, according to a new report by JLL. The property consultancy reveals that real estate transaction volumes in the UK for 1Q2017 in local currency terms are at their highest level since 2015.
The research shows the UK led the way as the most active real estate market in Europe and was the world’s most traded city. Hong Kong buyers were the most active, spending close to US$3 billion on UK properties in 1Q2017, compared with only US$842 million in 1Q2016. Hong Kong buyers snapped up offices in the City of London and West End, outspending global funds and all other foreign groups combined by almost US$1.3 billion.
Elsewhere, Asian buyers continue to seek properties in the US, despite broader political and economic uncertainties.
Asian investors remain confident in the UK despite the many unanswered questions and uncertainty surrounding Brexit, according to a new report by JLL.
“Asian buyers were among the most active investors in the US, with investors from Singapore, Japan and China driving most activity,” says David Green- Morgan, head of research, global capital markets at JLL. “Investors from Singapore and Japan acquired offices in New York, Boston and Washington DC, as they renewed their focus on core assets in global gateway cities.”
Despite increased government scrutiny, Chinese outbound capital increased 84% in 1Q2017 to US$7.5 billion, compared with US$4 billion in 1Q2016. Chinese buyers continued to invest in Hong Kong, Chicago, Los Angeles and San Francisco. The shortfall in outbound capital was confined to investments in Australia and Hong Kong, with cross-border buyers focusing mainly on core CBD office assets, retail malls and properties in niche sectors such as senior housing.