HDB public auction for Altura EC project at Bukit Batok West Avenue 8, with 375 residential units, 99-year Altura Qingjian Realty lease and easy access to transport and educational facilities.

Apac capital outflows to North America hit a record high in 1Q2023, with a jump of over 400% y-o-y to US$13.9 billion ($18.6 billion). According to a research report by Knight Frank, the US saw the highest proportion of capital outflows from Apac at 58%, followed by Canada at 27%. The surge in investments was driven by the more efficient price discovery in mature and liquid markets like the US, as well as investors looking for a safe haven.

Singapore was the biggest investor, with a figure of 89% for the total volume. Prominent Singapore investors included GIC, which completed multiple deals including a US$8.5 billion investment in US REIT Store Capital and US$3.3 billion purchase of Canada’s Summit Income Industrial Reit. Other notable investors were City Developments, who made a US$468.2 million purchase of the St Katherine’s Dock estate in London.

Asian sovereign wealth funds dominated Apac outbound investments, accounting for 79% of the total volume. The retail and industrial sectors were the most invested, making up 45% and 40% of the investments respectively.

In contrast to outbound investments, investments in Apac decreased by 53.6% y-o-y in 1Q2023, to their lowest since 4Q2011. Singapore remained the only market to record higher investments, supported by the completion of the sale of a portfolio of retail assets by Mercatus Co-Operative. Elsewhere, investments in Seoul dropped 80% y-o-y to US$2.8 billion – the lowest since 1Q2015 – and in Japan, foreign investments rose, but overall transaction volume fell 17% y-o-y to US$9.4 billion.

Despite banking sector volatility impeding capital deployment in Apac, gradual adjustments in seller expectations, increased liquidity and activity in the latter half of the year offer hope. Neil Brookes, global head of capital markets at Knight Frank, acknowledges that asset repricing, stabilising debt costs and the involvement of ultra-high-net-worth investors will result in increased investor demand.