Asia Pacific Continues to Dominate Global Capital with Singapore Taking the Lead
The Asia Pacific region remains the top source of global capital in the first half of 2023, according to Colliers’ latest report on global capital markets. Singapore, Hong Kong, and Japan have emerged as major players, with Singapore taking the lead as the second-largest global spender, just behind the United States.
Singapore, also known as the Lion City, has shown an impressive investment portfolio, attracting cross-border capital investments totaling USD 21,840 million in H1 2023, accounting for approximately a quarter of total investments. Surprisingly, Singapore’s spending is three times higher than that of Canada, which holds the third position.
Hong Kong and Japan have also made their mark, with expenditures of USD 6,508 million and USD 5,151 million respectively in the first half of the year.
Chris Pilgrim, Managing Director of Global Capital Markets, Asia Pacific at Colliers, attributed this momentum to significant institutions in Singapore and Japan, as well as a surge from Australian superannuation funds.
The APAC region has witnessed substantial capital deployment globally in H1 2023, with the US maintaining its position as the most liquid market. Additionally, the UK has seen an increase in capital influx from the APAC region, partly due to its market revaluations compared to other regions in Europe and Asia Pacific.
Real estate investors in the Asia Pacific region have been diversifying their portfolios into growth sectors such as healthcare, senior living, and student housing. The growing interest in the APAC region is also evident with the increased presence of funds from North America and Europe in Singapore.
The Asia Pacific region has solidified its global position, with notable investment growth in Japan, China, Australia, and Singapore. Singapore’s cross-border capital now accounts for 24.9% of total investment, a significant increase from 8.9% between 2018 and 2022, primarily focused on regional real estate.
The report also predicts promising economic growth for the Asia Pacific region, with a projected increase of 4.6% in 2023, compared to 3.8% in 2022. This suggests that the region could contribute nearly 70% to global economic growth this year.
Pilgrim concluded with an optimistic outlook, expressing confidence in the continued outperformance of Asia Pacific markets and the sustained dominance of capital from the region in global real estate markets.
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