For the second consecutive year the United States is the most attractive market for Asian investors, however destinations for investment continue to diversify.
Asian outbound real estate investment was dominated by Chinese investors in 2016, accounting for nearly half of total investment, with almost fifty percent or $28.2 billion, according to latest data compiled by CBRE.
Overall outbound investment activity by Asian investors remained robust with institutional investors continuing to lead investment activity, contributing to six of the top ten biggest outbound deals of the year.
Capital Outflow Will Moderate
However with more scrutiny on cross-border capital flows and rigorous checks by the government which may lengthen the approval process, Chinese outbound real estate investment may moderate, gathering at a more sustainable rate.
Instead of larger transactions, Chinese investors may simply opt for a higher number of smaller deals. Regardless, Chinese appetite for global real estate investment will remain solid.
«Chinese investors remain active in deploying capital offshore into global real estate assets. Despite recent policies by the government restricting Chinese outbound investment, there continues to be a steady flow of Chinese capital overseas as investors seek to diversify their portfolios,» said Yvonne Siew, (pictured) Executive Director, CBRE Global Capital Markets.
Alternative Cities
For the second consecutive year, CBRE figures reveal that the U.S. remained the most favoured destination for Asian capital. Compared to 2015 though more capital was deployed to alternative gateway cities in search of attractively priced opportunities.
And while New York, London, Hong Kong, Seoul and Sydney are still popular, new locations such as places in Continental Europe, France and the Netherlands; Chicago, San Francisco and Washington in the states and Vancouver in Canada, are now on more investor radar screens.
