Chinese Investors Making the Most of a Recovering Economy Overseas

Chinese investors have made a real move during 2014 to make investments in real estate based overseas, highlighting the importance of a marketing campaign that is aimed at Chinese investors.

A study carried out by Knight Frank between 2009 and 2014 showed that the total of China’s overseas investment came to $15 billion which has risen from $0.6 billion. During 2014, Australia experienced the highest growth in real estate investment from China with a 60% increase year on year.

The three main recipients of Chinese investment is Australia, the UK and the US, but those individuals with high net worth are now more knowledgeable about the market and are now looking for new investments around the world, looking further than the usual investment spots of London and New York.

In comparison to Beijing and Shanghai, many prime investment spots are now showing a decrease in prices, the likes of Miami and Los Angeles are now 25% lower than Shanghai which means Chinese investors are now showing an interest.

JLL’s Global Capital Markets Research Director, David Green-Morgan is expecting to see an increase in the amount of money invested by Chinese investors globally, especially in America. Chinese investment outside of China has been unbelievable throughout 2014 and it is not just wealthy individuals making purchases but also companies, developers, state-owned enterprises and institutions. They are rapidly becoming a vital source of capital within the real estate industry around the world.

During 2015 this is likely to increase and Chinese investors will more than likely be turning their interest to the likes of Germany, Spain and France as well as alternative cities in North America as they have really done a lot of investing in the likes of New York and San Francisco but expansion is looking likely.

Chinese Investors are also looking a little closer than expected and they are now showing an interest in Tokyo, making the most of the weak Japanese Yen. These investments made by Chinese investors in neighbouring countries have totalled almost £230 million during 2014 which is three times the amount of 2013.

Why are the Chinese now a driving force behind the price of real estate around the world? Many believe that there are three factors behind this. This first is the policy push by the Chinese government to move into other countries, the domestic market becoming softer and the potential higher returns in overseas markets. However, there is belief that the way the Chinese market is policy driven could have an impact on investment made by the Chinese should these policies change.

Despite this, the investment is expected to grow exponentially and this could be down to the slowing down of the Chinese economy as well as the real estate market with wealthy individuals looking to alter their investments to the point where they can take their capital out of China, so these opportunities will continue to appeal and Chinese investors will be seen taking advantage of real estate markets all around the world.

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The Overseas Investor are international property experts, with a wide range of investment properties including properties for sale in Egypt, The Us, The Caribbean and in the UK.

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