Asian investors become most active net buyers of commercial property, despite pullback from China
‘Singapore, Japan and Korea-based investors have seized the opportunity to expand offshore real estate portfolios as Chinese investors pull back,’ said Tom Moffat of CBRE
Asian investors have become the most active net buyers of commercial property, accounting for 20 per cent of assets disposed by global funds in the first half of this year, a time when outbound investment from China slowed.
Investors, notably from Hong Kong, Singapore, Japan and South Korea, bought one-fifth, or US$6.3 billion, of office, hotels and retail assets offloaded by global funds, which were the largest net sellers of commercial real estate – worth a total US$31.5 billion – between January to June, according to international property consultant JLL.
“As outbound investment from China slowed, investors from Hong Kong, Singapore and South Korea stepped in to provide liquidity, demonstrating the depth of the buyer pool from the region.” JLL said in a report.
This is a significant portion of the record US$81 billion in investment volumes in Asia-Pacific recorded during the same period, which was a 30 per cent year-on-year boost despite the mainland China slowdown in outbound investment, JLL said.