Chinese money lifting sentiment in Asia Pacific property market
SINGAPORE: Chinese developers ploughed over US$5.1 billion (RM21.76 billion) into the AsiaPacific residential market in the first three months of this year, a report from property consultancy Knight Frank showed on Thursday.
In Singapore, the wealthy Chinese builders have set records for residential land prices, both in Government Land Sales (GLS) tenders and in the collective sale market, helping to boost sentiment in the housing sector but squeezing the profit margins of local builders.
According to Knight Frank’s Asia-Pacific Residential Review, the growth in outbound activity by mainland Chinese developers has been one of the key trends over the past decade, with volumes going from practically zero in 2009 to more than US$2.5 billion last year.
From 2012 to last year, their favourite destination was Australia (36.5 per cent) along with other key markets, including Hong Kong (23.7 per cent), Malaysia (19.7 per cent) and Singapore (15.4 per cent).
Nicholas Holt, Knight Frank’s Asia-Pacific head of research, said following the flurry of cooling measures introduced in major mainland cities and the recently-enforced capital controls, Chinese developers were expected to invest more money in Hong Kong and smaller Tier 3 mainland cities this year, besides overseas markets like Singapore.
The inflow of Chinese capital has made a big impact in Singapore: Last week, units of China’s Nanshan Group and Logan