Shopping mall in the US/Bloomberg
Chinese investment in US commercial property is plunging as restrictions on capital leaving the country and geopolitical tensions weigh on real estate deals, reported Bloomberg.
According to a report from Real Capital Analytics, Chinese investors invested $1.4 billion into US commercial real estate in the 12 months through September 2019, a 76 per cent plunge from a year earlier.
Investment from Hong Kong was also down in the period.
Jim Costello, Senior Vice President at Real Capital Analytics, said, “Chinese investors have become net sellers as authorities in China have restricted speculative outbound investment.”
In the 12 months through September 2019, foreign investors were net sellers of US commercial real estate—that is after six consecutive years of gains in cross-border acquisitions.
Similarly, in September 2019, China’s Anbang Insurance Group agreed to sell a portfolio of luxury hotels in the US to South Korea’s Mirae Asset Management Company for $5.8 billion.