Asia Cross Border Property Investment Accelerated in 2014
Asia Pacific intra-regional property transaction activity accelerated in 2014 to leave investment markets on track to beat 2013’s performance. By the end of the third quarter of 2014, Asia Pacific cross-border investment reached US$9.1 billion, marginally ahead of the same period last year, according to research by global property agency Jones Lang Lasalle (JLL). In the meantime, global capital moving into the region increased significantly in 2014 with investment volumes reaching US$12.3 billion, a gain of 35% from the same time period in the year before that.
Singapore, Hong Kong and China continued to be the top sources of intra-regional capital. Together these three sources of investment allocated US$7.22 billion in cross-border property trades. Slowing domestic markets and restrictions on consumer lending, primarily in Singapore and Hong Kong, has been a major hindrance to developers who now look offshore for development and investment opportunities. Australian investment into Asia Pacific increased by 1,300% in 2014 compared to last year while markets such as Malaysia and Taiwan also saw robust growth of 377% and 56% respectively.