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CBRE.

“Outbound investment for whole year 2014 surpassed 2013, the second year in a row the region has reached a record high,” said Ada Choi, senior director for CBRE Research Asia. “

Singapore maintained its position as the number one source of outbound capital, closely followed by China and Hong Kong—with all three markets showing an increase in cross border investment. Singaporean investors looked offshore as a result of compressed yields in their home market and a shortage of investible assets, while Chinese outbound growth was in particular driven by the emergence of new sources of real estate capital, particularly insurers as they sought to increase their allocation to real estate under more relaxed rules,” added Ms. Choi.

[caption id="attachment_5396" align="aligncenter" width="440"]2014 Asian Outbound Investment - CBRE Infographic 2014 Asian Outbound Investment – CBRE Infographic[/caption] Deployment of capital into real estate accelerated as new investor types emerged over the year, in particular insurance groups from China and Taiwan, and Chinese property companies. Investment strategies have begun to evolve as investors look beyond traditional gateway markets. In 2013 60% of outbound investment focused on five global investment destinations, but in 2014 this reduced to 39%. Notable beneficiaries of this trend in 2014 included Paris in Continental Europe and Los Angeles, San Francisco and Washington in the US. Asian cross-border real estate investors also began to diversify in terms of asset classes; investing more in hotels and industrial—though office continued to dominate. EMEA continued to receive the largest share of Asian investment, receiving US$13.7 billion of the total, but remained flat on 2013. Other regions saw substantial increases in Asian investments: Americas (up 20% year-on-year), Pacific (33% year-on-year) and Asia intra-regionally (58% year-on-year). In Asia, Japan was the leading target destination, followed by China.]]>