A staggering USD16.1 billion was pumped into overseas real estate from Chinese investors during the first half of the year, according to CBRE who also noted that this was more than double the amount invested during the same time last year. It was noted that interest in Thailand real estate has picked up recently but the United States continues to be the preferred property market of Chinese investors.
CBRE explained that hotels and offices are the most sought after types of real estate with residential buildings in certain locations also garnering some attention. Chinese insurance companies including China Life Insurance accounted for 50 percent of all overseas real estate investment. Conglomerates, 23 percent of all investment, and property developers, ten percent, have also been aggressively investing overseas.
“Concerns over the market slowdown in their home market have led Chinese investors to seek a safer investment environment which offer higher potential returns,” Ada Choi, senior director of research at CBRE Asia Pacific, told Forutne. She also predicted that Chinese investors will continue to purchase overseas real estate during the second half, but this growth will come at a steadier pace.
The UK is also back on the radar with enquiries about the British residential and commercial property market from Chinese investors 30-40 percent higher than average during late June and early July, according to research from juwai.com.
“With politics stabilising and a competent new government in place, the UK looks like the same old safe haven as ever – but cheaper,” Bernie Morris, president of the UK, Europe and Middle East for juwai.com explained to Fortune.
Chinese investors were initially hesitant after the Brexit vote, but buyers are now looking to take advantage of the uncertainty by securing bargains in the UK. With the dollar and yuan now much stronger against the sterling than in years past, prices across the market are now more affordable than they have been in the past five years.
