Singapore Emerges as Top Cross-Border Investor in Asia Pacific Real Estate in 2023

• 26 March 2024
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Singaporean investors took the lead as the most prolific cross-border investors in the Asia Pacific region in 2023, surpassing their American counterparts. Their investment amounted to approximately US$8.3 billion ($11.1 billion), exceeding the US$7.3 billion invested by US investors during the same period, as reported by MSCI Real Assets on 27 February 2024.

Notably, Singaporean investors maintained a strong presence in key markets such as Australia and China, finalising significant deals, particularly in the fourth quarter. These investments were significant, especially as global investors tended to retreat to domestic markets.

Benjamin Chow, MSCI’s head of Real Assets Research for Asia, remarked, “These trends were part of a broader global narrative of investors retreating to markets closer to home.”

Investment from North American and European investors saw a notable decline of more than 50% in 2023 compared to the previous year, with Canadian and European investments plummeting by 75% and 79%, respectively. However, there was an exception to this trend with capital bound for Japan.

Consequently, global investors’ share of acquisition activity in the Asia Pacific region dropped to just 9%, marking the second-lowest level recorded for a calendar year. Besides Singaporean investors, Japanese investors significantly increased their spending in 2023, surpassing their combined outlay for the years 2020 to 2022. Australia emerged as their primary target market.

The sale of Sydney’s commercial tower, 60 Margaret Street, to Mitsubishi Estate and partner Sydney-based AsheMorgan for A$777 million (US$680 million) in October marked Australia’s biggest single asset deal of the year.

In terms of deal activity, private buyers dominated the acquisition of hotel and retail properties across most of the region. Meanwhile, institutional buyers targeted growth sectors and markets with strong tailwinds, such as data centres, student housing, logistics in Japan, build-to-rent in Australia, and rental apartments in China.

• Economy and Finance