【World Property Journal】Despite Covid, Asian Outbound Real Estate Investment Recovering in 2021

According to new research from global property consultant CBRE, Asian outbound commercial real estate investment volume declined 37% year-over-year to $30 billion in 2020, as Coronavirus-related obstacles including restrictions on travel and site inspections impeded purchasing activity.

Singapore retained its position as the most active source of outbound capital for the third consecutive year, accounting for $12.1 billion worth of deals in 2020. The Korean won's lower hedging costs against the US dollar contributed to investors from this market accounting for nearly half of Asian outbound investment stateside, and the second-largest source of outbound funds overall. Mainland China was third in terms of weight of outbound capital, underpinned by several major purchases in Australia. Although outbound investment from Mainland China rebounded slightly, the total figure remains well below historical highs.

The U.S. was the top destination for outbound capital in 2020, attracting $7 billion worth of funds, followed by the U.K., Australia, Mainland China and Germany. Asian outbound investment into the U.K. held largely consistent with 2019 levels as strong liquidity and attractive yield compared to continental European markets largely offset Brexit-related uncertainty.

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