Chinese property investors still getting overseas deals done despite tighter capital controls, says ING

Chinese real estate investors are still getting overseas deals done even after the central government tightened its grip on outbound property investments to curb capital outflows and support the weak yuan, according to a global real estate financier.

Global property markets can expect another big year from Chinese buyers with the largest institutional investors little affected by tighter capital controls, according to executives at ING, a Dutch bank that finances real estate purchases.

“It doesn’t impact our business a great deal,” said Robert Scholten, head of real estate finance for Asia Pacific at ING Bank. “[Institutional investors] will continue to invest in overseas real estate and many of them have overseas sources of income as well, which will help to fund those investments.”

ING’s real estate finance arm targets transactions with property value above €100 million (US$105 million).

Last year, China’s overseas commercial and residential property investment hit a record of US$33 billion, a 53 per cent increase from 2015, according to global real estate group JLL.

The US was the most popular destination, followed by Hong Kong, Malaysia and Australia.