Apr 02, 2014 | Comments 4
China-based investors are looking abroad for various real estate investment opportunities, partly in response to the Chinese government’s “Go Global” campaign.
Based on the latest study by consultancy firm JLL, London and New York have become the top investment destinations for Chinese buyers. In the past year alone, they have poured an estimated USD5 billion in the two cities.
“In China, we are seeing increasing interest in buying new homes overseas,” Maureen Yeo, associate director of international project marketing at Knight Frank Beijing, told Global Times, citing education, pollution or rental returns as the main motivation of the Chinese for investing outside of Mainland China.
Forbes predicts that this year Chinese overseas buyers will spend about CNY1.1 trillion (USD178 billion) in real estate investments around the globe. These investors are mostly ultra high net worth individuals and upper middle class Chinese who are looking to spread their wealth or expand their international portfolio.
“When they go abroad, they can be a driver of the economies of other countries,” chairman of Shanghai-based Greenland Holding Group Zhang Yuliang told Bloomberg. The state-owned company recently acquired the USD5 billion Atlantic Yards mixed-use development in Brooklyn, New York, and is developing the 25,600 sqm billion-dollar Metropolis project in Los Angeles, California.
Property Report recently spoke with Elsa Tian, international projects marketing director at Knight Frank Shanghai, who discussed the current trend of Chinese investments in overseas markets. Listen to the podcast here.
Image credit: CFP and Global Times