ASIAN OUTBOUND INVESTMENT DECLINES AS INVESTORS REBALANCE

Real Estate Press Releases Thursday March 14, 2019 09:40
Bangkok--14 Mar--CBRE

Asian outbound real estate investment noticeably moderated for the full year 2018, driven by primarily by a reallocation of portfolios by Chinese investors. Throughout 2018, a total of $53.8 billion (THB 1.72 trillion) in capital from Asia was allocated into offshore real estate by investors, according to CBRE, a decline of 36% year-on-year.

In 2018, Chinese investors rebalanced real estate portfolios, becoming net sellers of real estate in the second half of the year, contributing to the decline. Chinese investors deployed $7.5 billion (THB 239.1 billion) in capital into offshore real estate investments in 2018 versus $35.4 billion (THB 1.13 trillion) in 2017. According to CBRE's 2018 Outbound Investment Survey, coupled with a decline in offshore investment, Chinese investors transitioned to net sellers to strengthen balance sheets and recycle capital for deployment into future outbound investments.

"The Asian outbound investment story in 2018 was on one hand characterized by a clear moderation from China but on the other hand, represented cyclical portfolio rebalancing and strategically preparation for future activity. The pullback from China's investors was not entirely unexpected but encouragingly created opportunities for new strategic investors to amplify offshore investment activities," said Leo Chung, Associate Director, Research, Asia Pacific CBRE.

Throughout 2018, Singaporean and Korean investors solidified their positions as more visible offshore real estate investors. Singapore-based investors deployed a total of $21.6 billion (THB 688.6 billion) in 2018 against $20.9 billion (THB 666.3 billion) in 2017. Korean investors allocated $7.3 billion (THB 232.7 billion) in capital last year versus $6.3 billion (THB 200.8 billion) in 2017. Investors from Malaysia and India also became more prominent in 2018, selectively investing more capital overseas, up 132% and 291% respectively.

Geographically, allocations remained consistent year-on-year, in terms of percentage of annual capital deployed. EMEA remained the leading destination for Asian outbound capital in 2018. The region attracted $21.5 billion (THB 685.4 billion) in total capital from Asian investors in 2018. Intra-Asian investments finished 2018 at $17 billion (THB 542 billion), followed by the Americas at $11.6 billion (THB 369.8 billion) and Pacific at $3.7 billion (THB 118 billion).

London remained the top destination for Asian capital, owing to strong fundamentals and its established standing as the preferred metropolitan areas for first time buyers to invest. Investors from Hong Kong, Singapore and Korea were the major buyers, accounting for over 85% of the investment activities. In 2018, 18% of total Asian outbound capital was deployed to London, up from 13% in 2017. The appetite for gateway cities was also reflected in Hong Kong (9%), Shanghai (9%) and Frankfurt (4%), growing or maintaining their percentage of total investment deployed for 2018.

"Asia-based investors remain hungry for offshore acquisitions, but will employ a more selective strategy in their overseas purchase activities. The hedging costs into certain countries are also impacting investment flows for many outbound Asian investors," said Tom Moffat, Head of Capital Markets, Asia, CBRE.


Latest Press Release

Dr.Pattana Suwansumrit well-known architect of #Condominium Design and Apartment Design Service show armed force of #Thai architect invite Russia and Kazakhstan to invest in Thailand

From 18th years experience of Pattana Suwansumrit, Ph.D. Chartered Architect in names of Pattana Professional Co., Ltd. – Well-Known Thai Architect of Condominium and Apartment Design – accepted from all around the world each Asia and Europe....

Habitat Group wins Asia Pacific Property Awards 2019 2020

Thailand's leading property-for-investment developer, Habitat Group, were recently recognized at the 2019-2020 Asia Pacific Property Awards with the New Hotel Construction & Design Thailand award for its luxury low rise condominium "Wyndham Atlas...

HOW CHANGE IN THE WORKPLACE IS CHANGING THE BANGKOK OFFICE MARKET

A lot has changed since fax machines, and boxy cubicles were mainstays in offices around the world. Thanks to changes in work styles, technological advancements and space allocation as well as cultural shifts, the workplace has drastically transformed...

Index Living Mall to offer 10% price cut for every baht spent for any items in store during #Member Days Sale campaign

Ms.Kridchanok Patamasatayasonthi, Managing Director of Index Living Mall PCL,announced the relaunch of the company's 'Member Days sale' campaign, designed to strengthen customer loyalty and engagement among more than 1.2 million holders of its 'JOY...

The 24th GILF Kicks off to Offer Global Buyers a Feast with 6 Highlights This Autumn

Since the first exhibition in 1999, the China (Guzhen) International Lighting Fair (hereinafter GILF) has become a hub of lighting procurement in the lighting capital of China - Guzhen. The 24th GILF will be held October 22-26, 2019, illuminating the...

Related Topics