Singapore is attracting increased attention from Hong Kong investors and may increasingly be viewed as a safe haven given the challenges some other global destinations are facing, according to a new report published by Cushman & Wakefield.
Singapore commercial real estate attracted $1.4 billion from Hong Kong in the first half of 2019, making it the top destination for investors from the special administrative region, Cushman & Wakefield said in a report on Greater China outbound investments published Tuesday.
This is the first time Singapore has come out tops, the commercial real estate services company said, citing the country's «stable political environment and relatively strong office rentals.» Trailing the Lion City were the U.S., U.K. and Japan.
«Some of these Hong Kong investors and funds have been active in Singapore for some time but the advent of the political situation in Hong Kong has coincided with more high-net-worth-individuals and family offices from Hong Kong enquiring on potential purchases,» Christine Li, head of research, Singapore and Southeast Asia, said.
Top Transactions
According to the report, year to date, the value of transactions by Hong Kong investors in Singapore commercial real estate is over $3 billion.
Key transactions so far include Gaw Capital Partners’ purchase of Robinson 77 for $510 million in February and the sale of DUO on Beach Road to a consortium led by Gaw and Allianz for $1.1 billion in May. In August, Arch Capital Management completed the purchase of prime CBD office tower Anson House for $151 million.
The report noted that Singapore retail assets are also on the radar of Hong Kong investors, citing the purchase of Chinatown Point Mall by Pan Asia Realty Advisors for S$520 million ($374.4 million).
Less Funds Deployed
In total, capital deployed overseas by Hong Kong real estate investors fell 31 percent year-on-year for H1 2019 to reach $5.2 billion as the result of downward pressures, the report said.
Q2 2019 was the sixth straight quarter in which outward investment from Hong Kong fell. The total value of deals during this quarter was $2.3 billion.
