Ensure you never miss an issue of the
real estate business bulletin
Chinese property investment skyrockets

Chinese property investment skyrockets

by James Mitchell 0 comments

The total value of Chinese outward real estate investment has jumped 1,900 per cent since 2009, reports global property group Knight Frank. 

Launched last month, Knight Frank's report Chinese Outward Real Estate Investment: After the Initial Waves, What's Next? found Chinese property investment in overseas markets grew from US$0.6 billion in 2009 to US$12 billion in 2013.

Focusing on three key markets – the US, UK and Australia – the report found that Chinese real estate investment volume in Sydney and Melbourne was almost comparable to that of London and New York in 2014.

The report also noted that the Free Trade Agreement (FTA) signed between Australia and China last November will accelerate the flow of Chinese investment funds into the Australian property market.

Neil Brookes, head of capital markets for Asia Pacific at Knight Frank, said investors today are shifting their focus towards sustainable returns in the long term.

“The key factors for Chinese investors are the policy push from the Chinese government to diversify into other countries; a softening domestic market; and the pull from higher returns achievable in overseas markets,” Mr Brookes said.

“Australia, the US and the UK are the top three markets most Chinese investors are looking at.

“We saw five times as much capital outflow from China into these three markets in 2013 alone compared to the previous year,” he said.

While capital cities are still favoured by Chinese investors, they are starting to look further afield to provincial towns for better yields, according to Knight Frank's head of research and consultancy for Greater China, David Ji.

Meanwhile, the weakening Chinese property market is further driving investors towards overseas markets such as Australia.

AMP Capital chief economist Shane Oliver last week forecast that China’s property slump could trigger a ‘hard landing’.

Chinese property investment skyrockets
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?