Font Size
Share this article

Print Friendly Version
08 December 2019

Chinese investment in US commercial real estate is plunging

While Chinese investors are avoiding US deals, there was an uptick in capital from countries including Germany, Turkey and South Korea.

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.


RELATED STORIES: US commercial property US-China tension





CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.

Subscribe to our News Letter


© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.