Knight Frank reveals singapore investment increases with china capital decline

Knight Frank Reveals Singapore Investment Increases With China’s Capital Decline


Australia – According to the figures revealed by Knight Frank, the increasing appetite of investors from Singapore and a rise in the capital inflows of Japan, South Korea and Hong Kong, has caused the real estate investment from China to drop in half.

The Active Capital report by the agency shows that the investment by Singapore’s investors increased by 64% from a previous $2 billion back in 2016 to now US $3.3 billion in the last year even though Chinese investment dropped to $1.3 billion.

The newest Singapore related deals include the stakes in two Mirvac towers located in Melbourne’s Collins Street and the infamous sovereign wealth fund, which the GIC purchased in Brisbane for $108 million. Another investment was the ARA Asset Management purchase in which an office buildingwas purchased at 320 Pitt Street (Sydney) for again $275 million.

Investments by other countries also increased such as those by Hong Kong, with its capital rising by 27% to $900 million, while South Korea increased 33% to $400 million. Finally, Japan increased their investment by 14%, to $200 million.

The changing dynamics also changed and started a near half in the total value of investment from $4.1 billion to $2.3 billion. However, despite this, the total foreign investment in Australia increased.

Knight Frank’s Ben Burston, who is the group director for Research and Consultation at the company, said, “Australia is a focus for cross border buyers. It has managed to attract $6.3 billion in inward investment from other places in the region, which is a 4% rise from 2016”. The figures speak for themselves and it only shows that the numbers are by in large increasing.

Outbound global investment capital in China increased by over 50% from a previous $8.8 billion back in 2014 to then $19.4 billion next year and then rising by another 51% in 2016 to $29.2 billion.

There has been an overall slowdown in Chinese investments as far as Australia is concerned. However, China dominates the world source of outbound investment capital but it is clearly losing its momentum. There might be a lot of reasons for this and one is that China is continuing to struggle on the global front for more than one reason. Currently, people are taking out their investments from China, as it is no longer considered as manna from heaven.

Investor confidence is also being supported by the fact that there is robust growth and the fact that the transport infrastructure is also improving.

China still remains affected by the fact that the trade tensions between it and US are ever increasing. China also led the global front at some point in time. However, as the global economy gets worse and the tensions between two of the largest economies increase, things seem to be lopsided for China that continues to struggle in terms of investments and capital.

However, while China is a little on the downside, other bigger economies with capital inflows and investments is now rising.