Outbound real estate investment from Singapore reached about US$7.3 billion in H1 2018, or the second highest in the world, according to JLL’s latest Global Capital Flows report.
The number one spot was clinched by the US, which spent over US$10 billion in foreign properties, while Germany took third place with slightly over US$7 billion.
In ascending order, the biggest recipients of property investments during the first half of the year were Hong Kong (US$14.6 billion), New York (US$15.8 billion) and London (US$15.8 billion)
“With over US$3.8 billion in acquisitions so far this year, Hong Kong investors are once again the most active offshore group in the UK’s capital. Trophy offices continue to be sought-after, with the second quarter seeing yet another large-scale trophy office acquired by a Hong Kong based purchaser,” said JLL.
“Not far behind are investors from Singapore and South Korea, with acquisitions of US$1.2 billion and US$1.1 billion respectively in H1 2018. Singapore’s Ho Bee Land made headlines for its US$884 million acquisition of Ropemaker Place, a City of London office tower.”
Meanwhile, the JLL report revealed that property investments in the Asia Pacific (APAC) region soared by 30 percent year-on-year to US$81 billion during the period, with Hong Kong being the largest receiver of offshore funds.
“Asia Pacific’s property markets continue to perform well despite global political and economic uncertainty. Globally, the pace of deal making in the region has raced ahead of Europe and the US,” said Stuart Crow, JLL’s head of capital markets for Asia Pacific.
In particular, the largest deal during the period was the US$5.1 billion sale of The Center, a 73-storey office tower in Hong Kong, which also set the record for the world’s most expensive property deal.