Chinese investors target property assets abroad
Trend in Chinese buying overseas property growing amid slump in domestic market, with investment in real estate soaring to US$15 billion
Some years after buying a flat in Guangzhou, mainlander Moon Wong made his first overseas investment this year, paying A$700,000 (HK$4.4 million) for a 900 square foot apartment in Sydney.
"There's a growing trend among mainland individuals buying overseas properties. I am only following the trend," said Wong, who works for a property agency in Guangzhou.
Chinese investment in overseas real estate has soared in recent years. Since 2009, the value has risen to US$15 billion from US$600 million.
Property consultancy Savills estimates mainland institutions invested close to US$13.5 billion last year, more than double the amount in 2012, on overseas property.
While the outbound investment is unlikely to grow any faster in coming years, Savills believes it is safe to assume it will continue to grow at an average annual pace of 20 per cent.
"This would bring the figure close to US$50 billion per year by 2020, comparable to, if not a little more than, what the US has invested in overseas markets over the last couple of years," Savills said in a research report released last week.