US investors remain top buyers of Asia-Pacific commercial property

By Cheryl / | April 1, 2019 6:37 PM SGT
Investors from the United States continued to be the biggest spenders on commercial property in Asia-Pacific in the first quarter of 2019, according to New York-based data provider Real Capital Analytics, having surpassed their Asian counterparts in 2018.
According to the company, as of Monday, US investment in the region's property markets this year amounted to US$3.2 billion. Hong Kong was second with US$3.1 billion, followed by Singapore at US$636 million, Australia at US$528 million and mainland China with US$522 million.
"US cross-border investors are the largest importers of capital to Asia in absolute dollar terms, and are known for their global diversification," said Petra Blazkova, senior director for Asia-Pacific analytics at Real Capital.
Last year, investment in income properties " defined as office, retail, industrial, hotel, apartment and senior housing " in Asia-Pacific amounted to US$159.1 billion, a two per cent decline year on year, with the US as the top cross-border buyer of Asia-Pacific commercial properties. Investment from the US amounted to US$18 billion, more than double of Singapore's US$8.5 billion, the second-largest source. China was third with US$5.6 billion, followed by Canada's US$4.4 billion and Hong Kong's US$4.1 billion.
In 2017, China and Hong Kong, with combined investments worth US$17.6 billion, were the region's top investor. The US was the largest individual investment source with US$11.37 billion. Hong Kong was the second largest individual investor with US$10.8 billion, while China in fourth place contributed US$6.88 billion. Singapore was the third largest source with US$7.6 billion, and investment from Canada in fifth place amounted to US$2.6 billion.
Blazkova said the increase in activity by US investors came in the form of deals such as Blackstone's purchases of Mapletree's Shanghai portfolio for US$1.2 billion and the Indiabulls Centre in Mumbai, Goldman Sachs' share of a joint venture to buy the Link Reit portfolio in Hong Kong, and KKR buying DAOR E&C's mixed-use portfolio in Seoul.
Asian investors, on the other hand, have faced a range of issues, including Beijing's capital curbs and the US...