Asian Outbound Investment 2019 - New Sources of Capital Emerge
Asian outbound real estate investment fell by 17% y-o-y to US$45 billion in 2019, according to the latest CBRE data. The decline was primarily due to fewer big ticket transactions and weaker activity by Chinese investors amid the continued imposition of capital controls.
Despite the overall decline in volume, buyers from Korea and Japan turned more active. Among the latter, the traditional preference has been to invest overseas through indirect vehicles. However, CBRE observed that direct investment by Japanese investors picked up throughout 2019.
Although Hong Kong SAR and Singaporean investors spent less in absolute terms in 2019, buyers from these markets retained a healthy appetite for overseas property. Several Hong Kong groups completed their first overseas acquisitions, including several office assets with long lease terms.
Paris was the top destination for Asian capital. Buyers also widened their investment destinations in 2019, completing acquisitions in a larger number of gateway cities.
Asian investors retain strong intentions to invest abroad in 2020, with CBRE expecting a strong focus on assets providing steady income streams.