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Singapore investors ramp up cross-border commercial real estate activity in Q1

Trade volumes in the Singapore to Australia routes ballooned 141% to $3.5b.

Local investors have been turning their sights outwards and ramping up cross-border commercial real estate investments in Q1, according to a report from Real Capital Analytics (RCA), with a significant increase in property investments in Australian, Japanese and Indian markets.

Singapore to Australia trade volumes ballooned by a whopping 141% to $3.5b over the past twelve months whilst trade volumes to Japan surged 67% to $1.4b. Local trade volumes to India and China clocked in at $0.6b respectively in Q1.

Also read: Singapore bought overseas properties worth $20.62b in 2017

A notable cross-border transaction was when sovereign wealth fund GIC bought 43% interest in Shinjuku MAYNDS Tower in Tokyo’s central business district for $1,265 per unit as a growing number of investors cash in on the property pickup in overseas markets.

In terms of inbound investment, Hong Kong led the charge in directing trade volumes towards Singapore after trade volumes rose 117% to $1.3b followed by China at $1.1b.

Amidst a surge in cross-border capital flows, overall commercial real estate investment activity in the lion city rose 16% YoY to $11.5b in Q1, RCA noted, reflecting a general upward trend across the region. The number of deals closed in Singapore rose 18% YoY to 91 transactions in the past twelve months.

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