Chinese investors spent a total of US$39.5bn on overseas property last year – an increase of eight percent compared to 2016, according to Colliers International.
The Canada-based global real estate consultant said that China’s outbound property investment pattern has seen a notable shift, with investment in the US dropping by 64 percent year-on-year to US$5.9bn, while procurement in Asia rose by 34 percent to US$12.5bn, The Paper reports.
Chinese property investment in Australia, South Korea and Canada also saw annual reductions of 61 percent, 90 percent and 84 percent respectively, said Cheng Yi, an associate director of Knight Frank China’s international investment division.
Noticeably, China’s investment in European real estate soared by 336 percent to nearly US$19bn in 2017, mainly due to the China Investment Corporation (CIC)’s takeover of Blackstone’s Logicor, a London-based warehouse property group, for US$14.4bn. Without the deal, China’s property investment in Europe would have remained stable.
Most Chinese enterprises preferred to invest in undeveloped land, on which they can build apartment blocks, office buildings and industrial property.
Business insiders believe that China’s overseas property portfolio will shrink in the near future due to the government’s strict control on capital outflow. Colliers projects that China’s property investment in Asia will decline by 10 percent in 2018, although growth should be restored between 2019 and 2020 thanks to rising capital needs from countries along the new Silk Road.