Asia’s outbound real estate investment moderated noticeably last year, driven primarily by a reallocation of portfolios by Chinese investors.
Throughout 2018, a total of $53.8 billion (Bt1.72 trillion) in capital from Asia was moved into offshore real estate by investors, according to CBRE, a decline of 36 per cent year on year.
In 2018, Chinese investors rebalanced real estate portfolios, becoming net sellers of real estate in the second half of the year, contributing to the decline.
Chinese investors deployed $7.5 billion in capital into offshore real estate investments in 2018 versus $35.4 billion in 2017.
According to CBRE’s 2018 Outbound Investment Survey, coupled with a decline in offshore investment, Chinese investors transitioned to net sellers to strengthen balance sheets and recycle capital for deployment into future outbound investments.