APAC investors continue to head to London, but also home in in opportunities beyond the capital

16 June 2016

Britain’s continued position as a focal point for APAC investors, particularly London’s continued attractiveness, have kept investment volumes strong in 2016 with £2.8 billion invested in London alone in Q1, according to international real estate advisor Savills.

Chinese investors were the most active by value, completing five deals in the capital worth a combined £1 billion in Q1, although Singaporean investors transacted the highest number of deals; 11 worth a combined £757 million. Savills forecasts that overall total investment volumes from APAC countries into London in 2016 are likely to be down slightly on 2015’s when total investment flow reached circa £6.7 billion.

Q1 2016 Asia-Pacific investment into London:
Country           Number of deals           Total volume (£ m)
China                        5                               £1,026
Singapore                 11                                £757
Hong Kong                4                                 £427
Australia                   1                                 £371
Taiwan                      1                                £220
India                         1                                 £4.3
Total                        23                             £2,806

Total investment from Asia-Pacific into UK real estate in 2015:

Country                 Total volume (£ m)
Singapore                    £1,854
Hong Kong                  £1,319
China                          £1,239
Taiwan                        £1,220
Malaysia                       £333
Australia                       £261
Indonesia                     £259
Japan                           £163
Thailand                          £9

Looking forward to 2017, Savills forecasts that Chinese investment volumes into the UK are likely to continue to be stable, as will volumes from Singapore and Hong Kong. Volumes from other APAC nations may however decline due to various issues, most notably capital controls being implemented within certain countries. 

Speaking yesterday at the London Real Estate Forum, Rasheed Hassan, head of Savills cross border investment, says: 

“The UK and particularly London continues to attract significant volumes from APAC investors tasked with finding an international home for capital. With total APAC volumes in the capital likely to be down slightly on 2015, although still very healthy, and a finite supply of prime central assets available, we are increasingly seeing investors looking further afield towards outer London and key regional assets as well as mainland Europe. Nonetheless, London still provides a variety of opportunities, such as long term income streams, redevelopment opportunities and mixed-used schemes, and the swift transaction times and liquidity of the market which appeals to APAC investors.”  

 
 

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Key Contacts

Rasheed Hassan

Rasheed Hassan

Director
Cross Border Investment

Savills Margaret Street

+44 (0) 20 7409 8836

 

Natalie Moorse

Natalie Moorse

Press Officer
Commercial Marketing & Press

+44 (0) 207 075 2827