Trending: Real Estate Investments in North America by APAC Investors Skyrockets

Real estate acquisitions in North America by investors from the Asia-Pacific (APAC) region have increased by over 400% year-on-year, according to real estate company Knight Frank.

Real estate acquisitions in North America by investors from the Asia-Pacific (APAC) region have increased by over 400% year-on-year, according to real estate company Knight Frank. Surpassing previous records, investments in Q1/2023 were valued at $13.9 billion, the largest trading volume recorded. The majority of outbound capital and total transactions in the region were made by investors from Singapore, who accounted for 82% of APAC capital and 89% of total transactions. The report states that this was largely led by Singaporean government fund, GIC, which made some of the biggest acquisitions in the period.

North America appears to be a favoured destination for 85% of total outbound investment with investors from the APAC region, further fuelling overseas investment, according to Christine Li, Knight Frank's head of regional research for APAC. She stated that better performance in more liquid and developed markets, such as the US, has created the interest in offshore investment.

GIC, valued at $690 billion, has recently led two major deals in the US and Canada, contributing to 79% of the total APAC outbound investment activity in the first quarter. During this period, retail and industry sectors were the most popular areas for investment.

However, Knight Frank identified a decline of 53.6% year-on-year in intra-regional investment activity, and Singapore was the only market in the region to report higher trading volumes in Q1/2023. Knight Frank suggested deals took longer than expected due to rising interest rates and volatile stock markets.

Despite these challenges, APAC investors continue to show interest in investing abroad, and North America appears to be a prime destination for investment. Knight Frank predicts that overseas investment is unlikely to slow down in the short-term future.