(Yicai Global) March 14 -- China's investors spent USD39.5 billion on overseas real estate last year, up 8 percent on 2016 to set a record, while their investment in Asian properties rose 34 percent per year to USD12.5 billion, Securities Daily reported today.

China's spending on Asian property mainly concentrated in relatively safe 'gateway' markets, with Hong Kong at USD6.9 billion, Japan with USD2.3 million and Singapore at USD2.1 billion taking the gold, silver and bronze, respectively, for cumulatively more than 90 percent of the total, Colliers International found.

Chinese tucked USD2.5 billion into Southeast Asian and South Asian properties -- four times the 2016 figure -- and the second-highest ever after the USD4.1 billion spent in 2013. Singapore became the most favored destination for Chinese capital, luring USD2.1 billion. Malaysia and Indonesia ranked second and third with investment of USD246 million and USD169 million, respectively.

Chinese outlays in US property assets dropped 64 percent annually to USD5.9 billion last year, while those in Europe expanded over threefold to USD18.7 billion, USD14.4 billion of which stemmed from China Investment Corp.'s purchase of UK-based logistics real estate company Logicor Europe Ltd. with its 147 million square feet of property from Blackstone Group LP. Excluding this transaction would have left China's real estate investment in Europe unchanged, however.

Strict capital controls the Chinese government imposes will thwart property binge buying by Chinese in overseas countries and regions, insiders anticipate.

China's real estate investment in other Asian countries will decline 10 percent to CNY71 billion (USD11 billion) this year, Colliers International projects, but rising asset demand of countries alongside the Belt and Road initiative will keep China's investments in these Asian real estate markets growing.