More Chinese Investors Looking into Buying More U.S. Property
Chinese investors are considered the second biggest overseas buyers of US real estate are building up portfolios of US commercial and residential properties as they are looking forward for new avenues of diversification. Chinese entities have announced that around US$ 5 billion in projects were made in the months between January to October which is six times the US$ 996 million for the year 2011 t0 2012 combines as data shown by the New York consultancy Rhodium group.
Also last week Greenland Holding Group completed a deal that gave a Shanghai based develop 70 percent stake in Forest City Enterprises Inc Atlantic yards a commercial and residential project in Brooklyn New York. The deal is expected to bring in the required US$ 4.8 billion in investments in the span of eight years and is said to be one of te largest property transaction of a Chinese company in the United States. China’s entry into the US property is underpinned by the decline in investment returns in their home turf along with the desire by wealthy individuals to diversify their investments overseas and several property companies s looking into capitalizing offshore migration.
Several investors are itching to diversify their assets and are looking for different growth opportunities, while other are just learning on how to enter a mature and develop real estate markets. As of now there is a rebound in the real estate pricing in the US and a tight inventory is seen in major cities paired with continuing low interest rates that are attracting Chinese buyers. In the past two years Chinese investment has reached US$ 18 billion which is more than the total of the previous 11 years.
Real estate is fast becoming a global industry and one can see its capital flow on a cross border basis just like any other investment class.