Singapore, Hong Kong, and Japan ranked within the top five sources of international real estate capital in 2023, with Singapore just behind the US as the second-largest source, according to MSCI.
The Asia Pacific region was significant in the global real estate market, with investors pouring $48.1 billion into properties outside their own countries.
Simon Smith, the Asia Pacific research lead at Savills, comments that Asian investors are making a mark globally, investing nearly $20 billion in North America and over $5 billion in Europe. This trend persisted despite reduced activity from US and European investors because of local market issues.
Singapore’s influence was notable, as it funnelled $25.3 billion into international real estate, dwarfing the per capita investment of US investors by 40 times.
Japan’s outward real estate investments reached $8.1 billion in 2023, with a strong focus on the US and within the Asia Pacific, notably in Australia and Indonesia.
Smith notes that the retreat of domestic investors in North America and Europe may have benefited Asian investors. He also mentions that Asia’s leading investors maintain robust international business networks.
Hong Kong directed $8.4 billion into foreign real estate, a significant portion of which went to China, the sixth-most popular investment destination. Conversely, Chinese investors largely did not invest abroad last year.
Tokyo, Singapore, and Hong Kong attracted considerable international real estate investments. US investors predominantly drove the market in Tokyo, while Asian capital flowed into Singapore and Hong Kong.
Jeremy Lake, investment sales head at Savills Singapore, notices a consistent uptick in commercial real estate interest from non-institutional buyers since mid-2023. He anticipates a boost in confidence and deal-making following potential US interest rate cuts.
Alan Cheong, a senior research executive at Savills Singapore, indicates Singapore attracts foreign investors due to positive carry in outbound investments and its reputation as a safe haven for inbound capital.
