APAC investors step up outbound investment in Q1 2022

Over 60% of transactions were conducted beyond the region as APAC investors retrace their pre-pandemic steps globally.
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The UK has overtaken the US as the largest beneficiary of Asia-Pacific capital, attracting US$5.7b in Q1 2022, an increase of 432% year-on-year compared to Q1 2021. The US recorded US$2.5b in transaction volumes while Singapore saw US$1.0b in investments from Asia-Pacific, occupying the third spot.

In Q4 2021, Asia-Pacific investors exceeded its previous second highest quarterly volume, with over US$32b of outbound commercial transaction and over 60% of transactions conducted beyond the region. In Q1 2022, the proportion of inter-regional deals holds at 60%.

Singapore investors are - once again - the most active capital source from the region, followed by South Korean and Australian-based investors. For Australian investors, this represents one of the few times that quarterly outbound investments rose over US$1b since the global financial crisis.

With the easing of travel restrictions, Asia-Pacific investors are now able to travel more frequently to inspect deals, retracing their pre-pandemic steps globally. Singapore remains the powerhouse of the region, with one out of every two outbound deals involving Singaporean capital which is focused on the core markets of the UK, US and Australia, with allocations spread evenly across sectors.

While the rising cost of debt will impact many investors with a fixed cost of capital, those able to withstand rate rises will remain active in Asia-Pacific. For both private wealth and institutional investors, this will be a pivotal year in shaping their post-pandemic investment strategies.