Asian real estate buyers are continuing to step up investments in the global real estate market, a consultancy group said, with outbound investments from the region hitting $19 billion in the first half of the year.
In a report, CBRE said outbound investments, at $10 billion, were up by 8.9 percent in the second quarter from three months earlier. This brought the first semester tally to $19 billion.
CBRE said international flows outside Asia increased by 13 percent year-on-year in the first half but intra-regional flows plunged 40 percent, reflecting more challenging conditions due to limited product availability and reduced liquidity.
China remained the largest source of Asian capital, with global real estate investments of $6.6 billion as of end-June. Singapore followed with $4.4 billion and Hong Kong was third with $2.2 billion.
The United States became the top country for Asian real estate investments, attracting $6.1 billion worth of deals during the period. It toppled erstwhile frontrunner United Kingdom, which gained only $4.4 billion.
“While most headlines have focused on a number of trophy sales in New York, about 40 percent of the capital invested in the US so far this year has flowed into Boston, Washington, Seattle and Los Angeles, all markets with positive fundamentals and ample opportunities,” CBRE noted.
London, however, remains the preferred city for Asian investors as it received $3.8 billion in inflows in the first half. It was followed by New York with $3.7 billion and Sydney with $2.2 billion.
“London has attracted around 85 percent of all investment in the UK so far this year.
Investors are increasingly taking advantage of positive sentiment in the leasing and capital markets by looking at value enhancement strategies and development,” CBRE said.
CBRE said there was continued and robust outbound growth with international capital allocations increasing by 30 percent.
“As more Asian investors look abroad to diversify a growing pool of domestic wealth, overseas market dynamics such as stable fundamentals, regulatory support and market transparency will continue to drive them to pursue offshore opportunities,” it said.