Singapore has emerged as the fifth-best investment destination for Chinese real estate investors, according to The Independent. Some acquisitions of investors last year included the US$441 million Goodluck Garden condo by Perennial Real Estate and Qingjian International.
Cushman & Wakefield has been monitoring the situation and has seen Chinese investors pouring their resources into Singapore's real estate. The funds have accumulated to US$650 million during the firm's observation, with reports having cited four acquisitions dating last year. These have placed Singapore among the list of preferred Chinese real estate investment destinations.
As for other destinations, Hong Kong managed to retain its place as the first choice, garnering US$9.5 billion in deas. It was followed by the United States at US$2.33 billion; Australia followed at US$1.74 billion, while the United Kingdom sat at third on the list of preferred locations. Rounding out the top 10 are Cambodia, Italy, Germany, New Zealand, and Portugal.
SBR confirmed investors' interest in gaining assets in Singapore. A survey was done among property investors, and 14% wanted to invest in Singapore this year. This was more than Germany at 10%; Canada at 6%; Malaysia at 4%, and New Zealand at 6%. However, it was less than Hong Kong at 18%, the UK and Australia at 24%, and the US at 35%.
Aside from the Goodluck Garden Condo, other Chinese acquisitions in Singapore included the $157 million purchase of the Jalan Juring Kechil development site. The other asset is the US$38 million worth 623A Bukit Timah Road.
There is, however, a muted marketing environment due to trade disputes and restrictions on the capital outflow. This has dampened the Chinese funding influx a little and have pushed them towards selling assets rather than acquiring them. There were some asset sales last year, which saw US$1.4 billion in properties being sold off.
Singapore had looked at more asset sales the previous year. Some of the other notable properties it sold off included an office at 77 Robinson Road, sold off for US$517 million to CLSA Capital, and a US$426 million worth industrial site at 20 Tuas South Avenue 14, bought by REC Group.
Cushman & Wakefield expected the US, UK, Australia, and Hong Kong to remain among the top choices for Chinese real estate investors. Other countries such as Canada, South Korea, and Malaysia, and other European countries like Germany will remain outside the top 10, according to company observations.
