Realty outbound investment jumps

Ada Choi, senior director of the company, said Asian outbound investment continued to show strength, and the company confidently expected full-year investments to surpass 2013, which was already a record year.

Meanwhile, in terms of sources of real-estate capital, the first half saw Singapore overtake China to become the largest source of Asian outbound investment – driven overseas by domestic yield compression and a lack of suitable assets. Hong Kong rose to second place for the first time, with domestic cooling measures in particular driving Hong Kong investors to look further afield, she said.

Marc Giuffrida, CBRE executive director, Global Capital Markets, Asia, said Asian investors continued to show a strong preference for trophy assets in global gateway cities, and it was no surprise that New York and London remained the top two destinations for real-estate investment.

It is interesting, however, that alongside a 40-per-cent year-on-year increase in outbound investment, the company is also seeing the top five cities targeted for investment – and particularly London – now make up a smaller portion of the total, he said.  This highlights how diversified global capital markets are becoming, particularly with the entry of Chinese developers who have a strong focus on West Coast US and East Coast Australian markets, he added.

James Pitchon, executive director, CBRE Research and Consulting, Thailand, said that Frasers Centrepoint, a Singapore-listed company controlled by Thai tycoon Charoen Sirivadhanabhakdi, was currently bidding for an Australian property group, Australand.

The offer, which values Australand at Bt78.26 billion, had been extended to yesterday. 

This is further evidence of Thai investors looking to diversify into overseas property investment, he said.