Chinese funds in realty overseas set to double

2014-04-15 11:33Shanghai DailyWeb Editor: Si Huan

Chinese mainland investors will likely double their outbound real estate investment this year from 2013, Colliers International has predicted.

The total value of outbound real estate investment by Chinese mainland has continued to grow from around US$69 million in 2008 to above US$16 billion in 2013, a white paper released yesterday by the international real estate services provider said.

"All signs point to overseas investment by Chinese developers and institutional investors picking up dramatically," said Terence Tang, managing director of capital markets and investment services for Asia at Colliers International.

"Given the expected further appreciation of the yuan and the sustained growth of demand for real estate with attractive yields, Chinese investment in overseas property will likely double in 2014."

Colliers noted that higher returns, diversification and the opportunity to create an international image have driven them to invest overseas.

Chinese investors are now increasingly beginning to switch from residential investments to commercial real estate, according to the white paper.

Colliers predicted the next wave of outbound investment will have a bigger focus within gateway cities or even going to cities near the main gateways such as Seattle, Boston, Munich, Paris and Brisbane.

The most popular targets of outbound Chinese capital in the last five years have been London, New York, San Francisco, Los Angeles, Sydney and Melbourne, Colliers said.