Mainland commercial real estate investors seen favouring Hong Kong
Investors to favour Hong Kong and the US, according to Jones Lang LaSalle's chief executive
Mainland investment in commercial real estate around the world will continue to grow this year as Chinese companies are encouraged to invest abroad.
Hong Kong, the United Kingdom, the United States, and Australia are the preferred destinations for mainland property investors, which include big private corporations as well as state-owned enterprises, according to Alastair Hughes, chief executive of Jones Lang LaSalle Asia Pacific.
In the first three quarters of last year, offshore investment by mainland enterprises in commercial real estate was US$1.97 billion, according to the property services firm. It estimates the full year total to be US$2.5 billion. Total investment will continue to grow this year, it said.
The figures compared to US$670 million in 2010 and US$2.9 billion in 2011.
"Chinese buyers will continue to do two things. One: buy in Hong Kong. Two: buy elsewhere in the world, particularly the US, the UK, Australia, and other parts of Asia," Hughes said in an interview with the Post.
"Since 2003, of all the money that Chinese investors have invested outside China in commercial real estate, about 44 per cent was invested in Hong Kong. We do not see that overall trend changing dramatically."