China dominated Asian outbound property investment capital in 2016.

Two years in a row, the United States has remained the top global property investment destination.

According to CBRE, Chinese property investors dominated Asian outbound real estate investment in 2016, accounting for nearly half of total investment (47 percent or $28.2 billion).  شقق للايجار

 

Overall, Asian investors' outbound investment activity remained strong, with institutional investors continuing to lead the way, accounting for six of the top ten largest outbound deals of the year.

 

"Chinese investors are still putting money into international real estate properties. Despite recent government policies restricting Chinese outbound investment, Chinese capital continues to flow overseas as investors aim to diversify their portfolios "CBRE Global Capital Markets Executive Director Yvonne Siew said.

 

"Chinese outbound real estate investment may moderate, gathering at a more sustainable pace, as the government tightens its grip on cross-border capital flows and conducts more thorough checks, potentially lengthening the approval process. Rather than larger transactions, Chinese investors may opt for a greater number of smaller ones. Regardless, Chinese demand for global real estate investment will remain strong but cautious, with Chinese insurers and accredited Asset Managers as the most involved institutional investors "Ms. Siew added.

 

According to CBRE data, the United States remained the most popular destination for Asian capital for the second year in a row, accounting for 43 percent of the total, with EMEA coming in second at 27 percent. Asia, which saw an increase in intra-regional operation this year, accounted for 23% of total investment turnover, up from 21% in 2015, indicating that Asian investors preferred to retain more capital within their own country.

 

In 2016, New York surpassed London as the top metropolitan destination for outbound investment; however, its share was lower than in 2015. The top five destinations—New York, London, Hong Kong, Seoul, and Sydney—accounted for 37% of the total, down from 42% a year ago, indicating that investment was spread across a wider range of destinations.

 

"Asian investors are becoming more interested in and finding assets in a wider range of global markets. More money was deployed to alternative gateway cities in pursuit of attractively priced prospects in 2016 than in 2015. France and the Netherlands, as well as Chicago, San Francisco, and Washington in the United States, and Vancouver in Canada, are now on the radar of more investors "CBRE Asia Pacific's Director of Research, Robert Fong, commented.

 

"While China, Singapore, Hong Kong, and South Korea continue to be the top four sources of outbound investment capital, other markets, such as India, are becoming more involved. There was a large increase in Japanese investment aimed primarily at the United States. We expect Japan to increase its overseas investment in the coming year as it recovers from a low base "Mr. Fong said.

 

The emphasis is still on the office, but the hotel industry is gaining traction.

 

The office sector remained Asian investors' favorite asset class, accounting for half of all investment. The top three destinations for office investment were the gateway cities of London, New York, and Hong Kong. Meanwhile, the hotel sector drew increased attention, with U.S. hotel assets attracting substantial foreign investment—the year's largest transaction was a Chinese investor's purchase of a hotel in the United States.

 

In addition, seasoned Asian investors showed increased interest in niche sectors such as student housing and healthcare in 2016. Three major deals were concluded by Singaporean investors in 2016, marking the first time that transactions in the student housing sector were registered.

 

"More investors are looking outside of traditional asset classes in search of higher yields and to keep up with demographic shifts," Mr. Fong added.

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