Chinese offshore property investment soared by 25 percent year-on-year, at the end of the third quarter, amid growing Chinese investor appetite for overseas real estate, according to Jones Lang LaSalle, a global real estate services firm.

Chinese offshore real estate investment volumes for 2013 have exceeded $5 billion, smashing the previous record of $4 billion for 2012.

Offshore expansion is more impressive than the Chinese domestic investment market, which is up 17 percent quarter-on-quarter.

While destinations for offshore capital have remained broadly consistent, Chinese real estate investors have been most active in Europe, the US, Australia and Singapore, the report said.

Interest in Europe, particularly, has increased since 2012, with transaction volumes up 25 percent year-on-year to almost $2 billion.

David Green-Morgan, research director of Global Capital Markets, Jones Lang LaSalle said: “Europe was an early focus for the Chinese investors with a number of deals completed in the UK over the last three years. This has continued in 2013, but the focus has widened, and we have seen deals occur right across continental Europe with increased investor interest in southern and central Europe. However, the UK remains the most sought after market in Europe as core residential and office assets in central London remain popular with investors looking for high yields.”

Investor appetite for assets in the US, Australia and Singapore has also increased with Chinese investment into commercial real estate markets.

After several years of speculative interest, Chinese investors have made some significant purchases in the US real estate markets this year with total investment reaching over $2 billion in 2013 and additional deals expected to compete in the final quarter.