Stymied by a cooling domestic market and allured by properties in top global cities, Chinese investors acquired more overseas real estate in 2014, with total investment reaching $16.5 billion in 2014, up 46% y-o-y compared with the total in 2013, according to Jones Lang LaSalle.
Australia, America and England Most Popular Destinations
Commercial real estate assets attracted the lion’s share of the capital, accounting for $11.2 billion (55%) of total investment in 2014, with residential investment taking a smaller, but no less insignificant, share of $5.3 billion (45%) of the total number. In terms of specific locations, Australia, America and England were the most popular locations, with London and Sydney standing out as city hotspots.
2014 Saw The 7th Consecutive Increase in Outbound Real Estate Investment from Asia
The 2014 numbers mark the seventh consecutive annual increase in outbound real estate investment and, given that the motivating factors are largely structural - superior living environments overseas, access to better quality education, better value for money and comparatively longer leases for commercial property investors - it seems likely that 2015 will see another solid year for outflows.
Policy Support from China Suggests Further Outflows from China
What’s more, the Chinese government is continuing to ease controls on outbound investment for both companies and individuals, adding further support for the 2015 outlook. In 2014 alone, the State Council - the legislative body of the Chinese government - lowered the minimum levels of investment required for an overseas purchase and reduced outbound investment taxes.