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US capital flows into Asia Pacific

7 December 2018

Capital flowing from the US into Asia Pacific was more important than intra-regional capital in the third quarter of 2018, data from Real Capital Analytics show.

The 17% growth in global cross-border volumes was driven by US-based investors, who spent a record $17.3bn in the last 12 months and accounted for six of the top 10 cross- border flows.

However, many of the US investors active in Asia are fund managers spending capital from all over the world, including Asia in the case of some funds. Nonetheless, the bulk of the capital spent by US managers is raised from their home institutions.

Asia Pacific real estate deal volumes shrank in the third quarter, after a record first half of 2018. Volumes in China fell 16% year-on-year and in Japan, 4%. RCA said Q3 2018 was the weakest quarter for real estate deals in Japan since the GFC. Seoul and Singapore however saw transactions increase.

Petra Blazkova, senior director, analytics at RCA Asia Pacific, said: “Quarterly statistics can be volatile, but the evidence across the board suggests that a change in direction may be underway.”

Further reading:
Real Capital Analytics