Singapore takes lead in Asia-Pacific cross-border investments with 22.8% surge

Singapore les APAC investments: Singapore has emerged as leing destination for cross-border investment in Asia-Pacific region, according to a recent analysis by Knight Frank’s Asia-Pacific research team. In first quarter of 2024, cross-border investment in Singapore surged by 22.8 per cent above 10-year average.

Institutional investors, contributing $906 million in transactions, played a notable role in driving this growth, particularly in hospitality sector. resurgence of Singapore's tourism industry and increased acquisition activity in hospitality market have fuelled investor interest in hospitality assets.

Institutional interest surges

Christine Li, He of Research, Asia-Pacific at Knight Frank, noted that despite a 29 per cent decline in cross-border activities across Asia Pacific, Singapore stood out with its robust investment activity. hospitality sector, in particular, has attracted significant interest from institutional investors due to its optimistic outlook and improving operational metrics. 

Li stressed potential for increased investment activity in Singapore's hospitality sector, driven by value-ded opportunities and strategic partnerships between investors and developers.

Meanwhile, South Korea and Japan have experienced a resurgence in commercial investment interest, particularly in office sector. South Korea saw a 12.5 per cent QoQ rise in investment volume, reaching $5.8 billion, with office deals dominating market.

Office sector reawakens

In Japan, despite an overall contraction in real estate investment volume, re is renewed investor interest in office and industrial assets, motivated by anticipated positive momentum in office sector.

Neil Brookes, global he of capital markets at Knight Frank, highlighted challenges in market, including cautious approach of foreign investors awaiting price justments and potential impact of interest rate hikes on market liquidity. 

He stressed importance of strategic partnerships and targeted investment approaches in capitalising on market opportunities amidst changing economic conditions.