U.S. Investments Pouring Into Asia-Pacific Property Market

Asia’s property market is becoming a hotspot destination for U.S. investors as the region continues to attract billions of fresh injections from across the Pacific. In the first quarter of 2019, a total of $3.2 billion from the United States poured into real estate assets in Asia-Pacific, strongly indicating the high confidence that the region inspires.

Per the data shared by Real Capital Analytics, there are five source markets that have been identified as key growth generators for the commercial property sector in the region and the U.S. tops the list. Coming in close is Hong Kong, whose collective investment in real estate interests amounted to $3.1 billion by the end of March 2019.

Rounding up the top contributors are Singapore, Australia and China – all have so far delivered investments between $500 million and $650 million in the same period cited in the Real Capital market report.

The data from Real Capital established the fact clearly that “the largest importers of capital to Asia in absolute dollar terms are US cross-border investors,” the South China Morning Post reported.

What’s Creating The Buzz?

The report likewise suggested that investors’ confidence in the region is much higher because of the perception that projected yields would be greater when compared to other markets such as the U.S. investors’ home-base in North America and even Europe.

For instance, “yields for Class A office properties have historically been higher in some Asian markets relative to those in North America and Europe,” the report by SCMP said.

Serving as a big draw too for would-be investors is the rock-solid promise of diversification when taking part in the ongoing action in Asia-Pacific. Such perception is anchored on the belief that the region remains to play out its current function as the world’s chief growth engine, irrespective of the industry.

Furthermore, it helps that the Asia-Pacific region is considered by analysts as both haven and growth markets. For many, investments in locations like Japan automatically point to reasonable funding costs and fairly steady ROI.

And in the case of the region’s financial hubs such as Hong Kong, Singapore and Shanghai, the possibilities of growth are immense, and not to mention that in Asia-Pacific is where China and India are found – both of which are seen to achieve greater economic expansion in the years and decades ahead.