Live from Hong Kong: interest from Asia is expected to increase in the coming years

News 28 Nov 2018

The uncertainty in China and Hong Kong offers opportunities for Europe. Particularly due to the trade dispute between the US and China, more and more capital is flowing from Hong Kong to Europe, including to London and Paris. Various parties indicate that Amsterdam is expected to become more and more interesting. This and more is clear from meetings at MIPIM Asia, where Capital Value is represented to bring the opportunities on the Dutch residential investment market to the attention.

In Hong Kong, the American-Chinese trade dispute is one of the main issues for many investors. The trade conflict leads to much uncertainty among property investors. The property markets in cities such as Singapore and Hong Kong are experiencing a decline in international transactions with a price correction as a result. The prospect for these real estate markets remains uncertain, as a result of which Asian investors are looking for alternatives.

Interest in Europe increases
Several funds have indicated that they want to invest more in Europe in order to further diversify their portfolio. During the panel session on ‘European Opportunities’, the opportunities for Asian property investors in France, the United Kingdom, the Netherlands and Russia were discussed. This showed that Asian funds have a preference for ‘Gateway’ cities that are strongly connected to international trade and knowledge networks. Despite Brexit, London remains the top destination for Asian capital in Europe. However, more and more Asian funds are also investing in Paris, Frankfurt, Berlin and Amsterdam. ‘We are seeing an increasing interest from Asian investors in the Dutch residential investment market. Investors such as First Sponsor Group and AT Capital have already purchased housing projects and several funds, including the Japan Post, are investing indirectly in Dutch rental housing”, says Jelle Tinke, Manager International Investments at Capital Value.