Transactions of completed properties in Asia are expected to drop 5% to US$122 billion ($166 billion) this year, compared to the record US$128.4 billion last year, according to a report by Colliers International. Hong Kong is expected to see a 15% decline in property investment activity as previously strong interest from mainland Chinese buyers has abated.

Singapore has overtaken China as the major source of Asian investments in global property markets, as capital outflows from China have slowed further due to regulatory restrictions. As a result, total investment by Asian investors into the real estate sector outside Asia fell 31% last year to US$50.5 billion.

An expected rebound of 21% in Asia-to-global investments this year, to US$61 billion, hinges on the success of the ongoing Brexit negotiations, says Terence Tang, managing director of capital markets & investment services Asia at Colliers International.

Intra-Asian property investment continued to grow strongly, climbing 10% last year to reach US$98.2 billion. This direction of capital flow is nearly double that of Asia-to-global property flows, thanks to strong investment activity from Hong Kong, Singapore, and South Korea. This trend is expected to continue, and Colliers forecasts another 10% increase this year to US$108 billion.

Investment into Asian real estate from outside the region has grown to its highest level since the 2007-2008 global financial crisis, and climbed 38% last year to reach US$24 billion. This trend indicates renewed confidence in the prospects for the property markets in the region. The amount this year is expected to grow 25% to reach US$30 billion, with investments from the US leading the way, says Colliers.