In our first article of the year, we want to reference the recently-published “Knight Frank’s APAC Real Estate Outlook 2023”.
This report is particularly relevant given that their target audience and readers of UHNWI, HNW, and Global Family Offices are the same as ours. We work with private banks, client advisors, external asset managers, real estate agencies, and family offices all around the globe as their real estate financing and property-sourcing partner.
KNIGHT FRANK APAC REAL ESTATE OUTLOOK 2023 SAYS --> U.S.A. #1!
One glaring takeaway from the Knight Frank report is that out of the Top 10 Locations for a 2nd Residence for Asian and/or UHNW buyers, U.S.A. is their top choice!
Here is the list in order of preference:
1 – U.S.A.!!!!
2 – Australia
3 – New Zealand
4 – United Kingdom
5 – Singapore
6 – South Korea
7 – Taiwan
8 – Japan
9 – Indonesia
10 – France
PEOPLE ARE FINALLY NOTICING WHAT WE HAVE BEEN SAYING -> U.S.A.!
While we have been way ahead of this thesis, having been on our journey the past 5 years promoting the benefits of owning U.S. real estate, what we find interesting is that: 1) global real estate behemoths like Knight Frank are promoting U.S. Real Estate and 2) the Asian and UHNW clientele have chosen U.S.A. as their favourite destination for owning a second home.
WHY INTERNATIONAL INVESTORS ARE FAVOURING THE U.S.A. vs. R.O.W.?
Over the past 12-24 months, what has been clear to us from conversations with our clients, in the eyes of an international investor is that:
1) real estate is finally an inflation hedge, 2) the U.S. is a safe haven, especially for real estate, 3) having more USD exposure has economic benefits, 4). while they may not want to live there permanently; having a base in the U.S. has benefits (U.S. Family Office, U.S. Trust, etc.), 5) the age of children who were born during the start of the latest economic boom (say around the time China entered the W.T.O. in 2001) are now entering high school/university. The U.S. still has the best for both globally, 6) the U.S. tax regime is not as complicated as perceived, 7) they would appreciate help finding the property, advising on tax and corporate holding structure, and arranging a property management company.
KNIGHT FRANK’S REPORT ECHOES WHAT OUR CLIENTS ARE SAYING TOO!
In their report, the top 3 themes influencing investment strategy are 1) mitigating higher inflation (69%), 2) income security (67%), and 3) focusing on safe haven markets (55%).
While this is consistent with what our clients tell us, Education is also an important theme. This is assumed given Education is what drives price appreciation, which in turn creates a safe haven market.
GMG HIGH-NET-WORTH REAL ESTATE ADVISORY
We launched this in 2022, and we have grown our capabilities due to demand from our end-clients and global partners, private banks, family offices, external asset managers, and client advisors.
Residential Real Estate Financing: U.S.A., Mexico, Canada, U.K., France, Spain, Portugal, Dubai, Singapore, Hong Kong, Thailand, Philippines, Japan, Australia
Global Bridging Loans: U.S.A., Canada, U.K., Australia, Singapore, Hong Kong, Thailand, and Philippines.
Asia Institutional Structured Real Estate Debt Financing: US$50M minimum (<$50M case-by-case basis), Construction, Development, Singapore, Hong Kong, China, and Australia.
Global Property Sourcing*: U.S.A., Canada, U.K., Spain, Dubai, Singapore, Hong Kong, Thailand, Philippines, Australia, and Japan.
Global Property Extended Services*: Expat and/or Foreign National Tax and Holding company advice, Property, and Personal insurance.
Other Financing Solutions: Share financing, Crypto financing (case-by-case), and Luxury watch financing.
*Introductions to carefully-selected partners to include by not limited to developers, real estate agents, lawyers, and accountants.
THE GMG STORY
Founded in 2019 by Donald Klip and Robert Chadwick to provide solutions to international clients looking to secure real estate financing in countries where they are not residents, typically for investment purposes or a second home. We have now grown to a team of 25, spread across the world, offering financing solutions to every major country in the world with over 300 lending relationships globally.
Reference: Knight Frank APAC Outlook 2023 Report