China’s property investors spend $200 billion on property overseas.
From a $270 million Hong Kong home to a $6.5 billion dollar stake in Hilton Worldwide Holdings, Chinese investors are increasingly investing more into residential and commercial property in the international market.
At the Shenzhen Real Estate Expo, Chinese company representatives announced that real estate in Australia, Canada, Dubai, Greece, Malaysia, Spain, Thailand, U.A.E., U.K. and the U.S. are now fair game.
Hong Kong based online real estate platform, Spacious, said that the volume and value of the transactions are staggering, also adding that the market pressure is high in property markets in which the Chinese are active in.
By 2016, Chinese property investments had reached a total of $28.2 billion, overtaking the United States as the largest cross-border real estate investor and Singapore as the largest investor in Malaysia.
According to Spacious, the devaluing yuan, unstable prices of domestic financial property and competitiveness of the market is the reason why Chinese investors are looking overseas. The online real estate platform also says that Chinese used to purchase second homes overseas so that their children could use while studying overseas or to store cash.
Older Chinese residents are also using their savings made from the rentals of their primary residences in affluent cities like Shanghai, Shenzhen and Beijing to purchase vacation homes overseas that offer a better quality of life, cleaner air and food. A growing awareness of international opportunities means that Chinese are now turning overseas for better investments.
Chinese investors are more daring in their approach to investments, and are less risk averse. They prefer to spend more initially to secure a property, racking up some debt, before working on turning it into profits.
The injection of capital from Chinese investors is appreciated as it is needed to create fund the creation of jobs and development new projects.