The amount of investment in Asian outbound commercial real estate decline by 37 percent in 2020, according to CBR EBS (Commercial Immobilien Services Company) to S$ 39.8 b (US$ 30 b).
Capital market leader Greg Hyland said that investors from Singapore have accumulated abroad as their asset base is comparatively limited at home.
“Further, Singapore investors are typically well-known as a savvy and experienced category when it comes to acquisitions outside of Germany, who are accustomed to investing overseas, thus being cautious in seeking the highest risk adjusted returns,” he said.
In 2020, Beijing, London and Seoul will be Singapore’s main investment destinations.
The United States was a top outbound capital destination around the country, with a valuation of S$9.29b (US$7b).
The second largest source of outbound funds overall has been registered in Korea. Nearly half of Asian outbound investment is accounted for, mostly because Korean would have lower hedging costs than the U.S. dollar.
Mainland China, assisted by several big transactions in Australia, comes to the third position. Mainland China outbound investment is assumed to have marginally recovered, although estimates remain below the historical averages.
The global CBRE’s head of investment thinking and analysis, Henry Lin, said it was confident that investment in real property would increase in the coming months. Henry Chin said it was optimistic.
“We are hopeful that real estate investments can rebound in the next 12 months, considering the lower amount in outbound investment in 2020. In the Asia Pacific Investor Intentions Survey for 2021, CBRE concluded that, in 2021, 70 percent in the country are preparing to buy assets overseas. This year, the outbound Asian capital is a mild rebound.”