Singapore registered cross-border investments worth US$21.8 billion($29.9 billion) in 1H2023 (Picture: Samuel Isaac Chua/The Edge Singapore)
SINGAPORE (EDGEPROP) - Based on research compiled by Colliers, Singapore has emerged as the biggest source of capital deployed for real estate investments in 1H2023. In a September report by the consultancy on global capital market flows, Singapore was ranked the top source of global capital, with cross-border investments worth US$21.8 billion ($29.9 billion) registered in 1H2023.
The city-state represents around a quarter of the total capital deployed globally during the year's first half. The US, which ranked second, had US$15.85 billion in cross-border investments in 1H2023, or 18% of the total. Canada came in third place, with US$7.24 billion or 8% of the total.
“Singapore is a significant global real estate investor and continues to fire up on investments post-pandemic with its hunter instinct seeking growth and diversification opportunities in more markets and new asset classes to pursue greater returns leveraging different capital sources and its stronger currency,” says Tang Wei Leng, Colliers Singapore’s managing director and head of capital markets and investment services.
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Top 10 global cross-border capital sources in 1H2023 (in US$ mil)
Source: Colliers, MSCI Real Capital Analytics
Among Asia Pacific (Apac) countries, Hong Kong and Japan also dominated the list of cross-border capital sources. The former ranked fourth with investments totalling US$6.51 billion in 1H2023, while the latter ranked fifth with US$5.15 billion.
Chris Pilgrim, managing director for global capital markets, Asia Pacific at Colliers, notes that the US and the UK are among the countries that have attracted capital from Apac. “Apac real estate investors are equity rich, and those who are nimble and flexible have been able to diversify their strategies, targeting growth sectors and geographies within real estate asset classes such as healthcare, senior living and student housing,” he adds.
Apac countries also ranked highly among global investment destinations, with Japan, China and Australia ranking within the top ten, along with Singapore.