In 2009, China’s overseas real estate portfolio jumped from $.6 billion to an estimated 15 billion this year alone.
The latest report shows that Chinese outbound investment shows that the major investment by the Chinese is in the American market, the UK, and Australia focusing on Gateway cities. (This information comes from the Knight Frank Chinese Outward Investment report).
Bellewoods EC Woodlands China Portfolio
Australian 2014 as seen more than a 60% increase of real estate investment in its territories from China during 2014, Neil Brooks, head of capital markets for Asia-Pacific at night Frank, said “”investors they are shifting their focus toward sustainable returns in the long run. 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 for higher returns achievable in overseas markets in Woodlands.””
China’s investors are targeting Australia, the UK and the US as the top three markets. With five times as much capital outflow from China into these, three markets alone in 2013 as compared to previous investments. It is expected the transaction volumes for Bellewoods EC from Chinese investors will continue to increase and will exceed all expectations for capital returns.
Bellewoods EC Woodlands Estate China
With the Chinese aggressive marketing strategy of overseas acquisition and its own softening market conditions(lower returns, lack of available properties, and depressed residential prices) which are forcing Chinese investors and developers. The Chinese government’s policy encouraging firms to expand overseas is showing more active investment activities also by Chinese institutional investors, banks, and developers. However, since this is a policy driven market in China, there remains the risk that China’s these conditions could change without warning as political pressure, economic, or changes in government sentiment shift.
Chinese capital outflow is seen as the first wave of Chinese expansion into the worldwide markets as their economic strength continues to grow in Bellewoods EC. This has resulted in banks acquiring property for residential use. The second way, large developers were looking to diversify and build up their overseas presence. The current third wave is now made up of equity investors, insurance firms, and individual investors were seeking for and profit driven returns on their money. Already the fourth wave is building made up of investors who are harder to predict and anticipate. These are the kind of investors made up of Ultra High Net Worth Individuals (HNWIs); small to mid State owned enterprises as well as private developers who are increasingly evaluating their overseas strategy and exploring overseas markets and future growth.
Quoting David Ji director, head of research and consultancy of greater China at night Frank, said “many provincial capitals and key cities in Australia, the United States, and Great Britain have now presented a better yield spread for Bellewoods EC than Gateway cities of London, New York, Sydney, and Melbourne.””
Woodlands EC by Qingjian Realty China
“”From our knowledge of overseas investment activities, only four of the top 20 Chinese insurance companies have made significant offshore investment, while 40% of them are considering overseas expansion.””
“”Chinese developers are more aggressive in investing such as Bellewoods EC in Woodlands with half of the top 20 players already making offshore investments. If we look into small mid-cap investors, the potential pool of investment will be significant, said Ji.
China has invested heavily in Gateway cities, now Chinese investors are diversifying by moving from core office and residential development into leisure and industrial assets. Investors are also attempting to diversify geographically moving from Gateway locations into higher yielding leading provincial capitals.
“”Whilst the Chinese HNWIs investors become more mature, many of them begin to explore new investment opportunities hotspots around the globe such as Bellewoods EC, such as Johor Bahru in Malaysia, Gold Coast in Australia, Los Angeles and Miami in the US. All of these hotspots present investors with higher yield than traditional overseas investment locations like London New York or Sydney””, So said, Thomas Lam, Senior Director, Head of Valuation and Consultancy at Night Frank.
“Comparing with key Chinese Gateway cities, such as Beijing and Shanghai, a number of recent investment in Bellewoods Woodlands have shown a discount in prime residential prices. For example, Los Angeles and Miami prime apartment prices are both about 25% lower than Shanghai, drawing significant interest from HNWIs in China for Bellewoods.”