Singapore cross-border investments drop 34% to S$3.7b in Q2

Global investors are adopting a wait-and-see approach.

According to MSCI Real Assets, outbound investment from Singapore was reported to be an estimated S$3.7 billion, a quarterly increase of 165.6% but a yearly decrease of 34.0%. Knight Frank said global investors are anticipated to delay their next actions until interest rates decrease and global tensions ease. 

“Nevertheless, many are actively exploring opportunities and assessing potential acquisitions, preparing to initiate a purchase when conditions become more favourable,” Knight Frank added.

Here’s more from Knight Frank:

More property groups and asset managers have also been expanding their portfolios to include purpose-built student accommodation (PBSA) across major markets as an asset class that is resilient amid weakening valuations for other asset types. PBSAs are typically counter cyclical with stable cash flows. 

As such, there were several major PBSA deals closed by various major property players. An example would be Mapletree Investments acquiring 31 student housing assets across 19 cities in the UK and Germany for S$1.7 billion in April.