How would you describe the current outbound investment environment for investors based in Greater China? Has there been any change in investor sentiment due to COVID-19 and travel restrictions?
“Fiery peace” is the phrase I’d use to describe the current outbound investment environment in Greater China. Cross-border market activity may seem calm on the surface, due to the restriction of international travel caused by the Covid-19 pandemic. However, virtual engagement with outbound investors is frenzied with interest as high or higher than pre-COVID, and deals still keep happening.
It’s especially interesting to see first time outbound investors from Greater China making their debuts in global gateway markets such as Hong Kong’s LINK REIT’s first overseas purchases in Sydney and London last year, both through Cushman & Wakefield. This shows clear evidence that investing in high quality, prime assets are still the preferred and universal strategy shared by all types of investors globally during times of uncertainty, and cash (flow) is still King.
In many ways it has felt like investors from this region are taking full advantage of the fact that they have come out of the pandemic crisis faster than their counterparts in the US, Europe and the rest of APAC, and they see this as a window of opportunity to capture prime assets with less competition that they would normally face as an overseas buyer.
Looking ahead, the gradual recovery of investment markets, likely in global gateway markets first, should see an increase in investment opportunities becoming available for investors from the Greater China region, meaning that we may very well witness a wave of outbound capital that surpasses previous peaks.
These opinions are the author’s own and do not necessarily reflect the views of Cushman & Wakefield. To find out more about how Jason Zhang views opportunities for outbound investment from Greater China, click his profile and get in touch. For more on investment trends across Asia Pacific, discover our regional Real Estate Investment Hub here.