“Money poured from the sky”: where Chinese investors buy real estate
For the past seven years, China has been demonstrating continuous growth in overseas property investment. In 2017, the volume of investments in commercial and residential properties grew by 18% and amounted to 119.7 billion dollars, according to research data of the largest Chinese portal of foreign real estate Juwai. Most of the Chinese investment is distributed between North America, Europe and Asian countries.
The volume of investment in real estate – 39.7 billion dollars.
The United States traditionally leads in terms of Chinese real estate investments. At the end of last year, investors from China spent $ 30.4 billion in the purchase of residential assets in the country, while the acquisition of commercial properties brought US economy $ 9.3 billion.
The main interest for Chinese investors are at home, especially near schools and universities. The purchase of such real estate, including, allows you to participate in the program for issuing a residence permit with the prospect of obtaining citizenship.
Since 80% of US visas of type EB-5 (the program of permanent residence for investments of 500 thousand dollars in US commercial enterprises) issued from 2006 to 2017, were received by citizens of the PRC. It is curious that, on average, the Chinese spend 3.5 times more to buy a house than the Americans themselves: about 831 thousand dollars.
Investments in commercial real estate in the past year have declined. One of the reasons is the strengthening of China’s control over the movement of capital since the end of 2016, as well as the fight against the withdrawal of funds from the country.
US Real Estate 8,479 listings on Tranio
Ocean View Studio Apartment in a luxury condominium, Fort Lauderdale, Florida, USA for $ 379,000 $ 379,000
Oceanfront Studio Apartment in Luxury Condominium, Fort Lauderdale, FL, USA
Total area 56 m² 1 bedroom
Spacious cottage with garage and terrace on the canal bank in West Palm Beach, Florida, USA for $ 359,000 $ 359,000
Spacious cottage with garage and terrace by the canal in West Palm Beach, Florida, USA
Total area 250 m² 3 bedrooms
Spacious apartments with balconies and panoramic windows in a new residence with a fitness center, hotel, garden and swimming pool, Aventura, USA for $ 505,000 $ 505,000
Spacious apartments with balconies and panoramic windows in a new residence with a fitness center, hotel, garden and swimming pool, Aventura, USA
Total area 113 m² 1 bedroom
The volume of investments in real estate – 23.1 billion dollars.
Hong Kong, the largest financial center in the Asian region, has a special administrative status within the PRC. The region is among the priority areas for Chinese real estate investment relatively recently.
The breakthrough came in 2017, when investors from mainland China invested 2.5 times more in Hong Kong real estate than in 2016. Now the main volume of investments (16.2 billion dollars) is provided by investments in residential real estate; investors have spent 6.9 billion dollars on commercial objects for the year.
The rapid growth is associated with several reasons, including the exacerbation of relations between Beijing and Washington, the Nikkei newspaper writes. According to experts at Colliers International, against the backdrop of trade wars, mainland investors prefer to buy overseas property closer to home.
The volume of investment in real estate – $ 22 billion.
In Europe, the main center of attraction of Chinese capital in real estate is the United Kingdom. Private investors, as in the case of the United States, in this country are attracted by the possibility of obtaining a residence permit. For example, Chinese citizens account for about 30% of British Tier 1 (Investor) visa visas, which are issued in exchange for investments in public stocks or capital of British companies in the amount of £ 2m.
In the commercial real estate segment, three quarters of transactions with Chinese money fall on Logicór, one of Europe’s largest warehouse operators. In December 2017, the Chinese corporation China Investment Corporation completed the acquisition of Logicor for 14.4 billion dollars. Thus, the Chinese investor received about 13.6 million m² of commercial space in Europe.
UK property 183 listings on Tranio
Comfortable apartments with a winter garden in a new residence with a concierge, roof terrace and underground parking, London, United Kingdom for 525,000 £ 525,000 £
Comfortable apartments with a winter garden in a new residence with a concierge, a roof terrace and an underground parking, London, UK
Total area 66 m² 2 bedrooms
New one bedroom apartment with balcony in Edgewar, London, UK. Price on requestPrice on request
New one bedroom apartment with balcony in Edgewar, London, UK
Total area 52 m² 1 bedroom
Three-room apartment with a large corner balcony, London, United Kingdom for 530,000 £ 530,000 £
Two bedroom apartment with large corner balcony, London, UK
Total area 64 m² 2 bedrooms
The volume of investment in real estate – 17.4 billion dollars.
Australia, which in 2016 ranked second in real estate investments from China.