Singapore tops Asia Pacific for 2021 outbound real estate investments totalling US$32 bil
/ EdgeProp Singapore |
Singapore-based investors deployed US$32 billion ($43.4 billion) towards outbound commercial real estate investments last year (Photo: Albert Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - Singapore-based investors deployed US$32 billion ($43.4 billion) towards outbound commercial real estate investments last year, up 164% y-o-y, according to data from CBRE.
Asian outbound investment by source of capital (2017 - 2021)
Among Asia Pacific countries, Singaporean capital dominated outbound real estate transactions last year, with six out of the top 10 outbound deals involving Singaporean investors. Hong Kong was the second most active market, with US$6.7 billion in outbound capital deployed last year, up 60% from the year before.
Top 10 Asia outbound deals in 2021
“Investors from Singapore and Hong Kong were the most active due to the size of their markets and available liquidity,” remarks Grey Hyland, head of capital markets, Asia Pacific at CBRE in a research report.
As a whole, Asian outbound commercial real estate investment surged 69% y-o-y to US$54.6 billion last year, surpassing 2019’s pre-pandemic volume.
CBRE’s research shows that the US was the preferred destination for Singapore and other Asia Pacific investors, which Hyland attributes to attractive US dollar hedging costs and the country’s robust economy relative to Asia as business travel normalises. US$21.6 billion in Asian outbound investment went to the US last year.
Other top destination markets for Asia Pacific investors last year include Australia with US$6 billion in outbound investment, followed by Mainland China ($5.4 billion), the UK (US$5.2 billion) and Japan ($4.2 billion). The UK was the only European market to record a significant inflow from Asian capital last year, as more investors shifted their emphasis back to the APAC region.
In terms of asset class, Asian outbound investment in industrial and logistics assets reached US$24 billion in 2021, surpassing office investment for the first time. However, CBRE notes that this has further compressed global industrial yields, which dropped to 3.7% in 4Q2021.
Top 10 markets for logistics by Asian outbound capital (2021)
Cross-border investments by Asia Pacific countries are expected to continue growing in 2022. “The majority of Asian investors are expected to deploy more capital this year with a particular focus on North America and regional gateway markets, such as Tokyo, Shanghai and Sydney,” remarks Dr. Henry Chin, global head of investor thought leadership and head of research, Asia Pacific for CBRE.
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