A blog by Marc Jarrett committed to informing readers and facilitating global commerce.
Saturday, 8 February 2014
Chinese overseas property investment ‘to double’
Outbound investment across Asia in 2014 will focus on gateway cities, especially in the United States and Europe, says Colliers International, and India’s market will revive
Chinese investment in overseas property is set to double in 2014, a leading agent predicts.
Asian investment in general in foreign real estate will major on major gateway cities, according to the Asia Forecast 2014, published by Colliers International.
“There is always a two-way traffic for real estate capital flows in Asia, but the trend in 2014 will be that outbound investment capital will predominate,” says the report.
“Given that Asia is currently in a very different property cycle than the US and Europe, its investors will become more active in outbound investment, focusing on key gateway cities, such as London, New York and Chicago.
“Chinese investors, in particular, are expected to look for overseas real estate opportunities with better yields and the strategic benefits of portfolio diversification.
“Colliers predicts that the total volume of Chinese outbound real estate investment will at least double in 2014.”
Terence Tang, Managing Director of Capital Markets and Investment Services for Colliers International, in Asia, says, “Investors are seeing value in the western markets given the recovery of the economy of the States and Europe and, of course, they are seeing growth potential in these economies, finding value there. And this is also a way of diversification.”
*India’s property market is also set for a revival, following the forthcoming general election, says Colliers.
The election must take place by May 2014 and is likely to actually be held a few months earlier, say commentators.
“What we are predicting is the potential market turnaround after the government election. This is partly attributed to the recent positive policy amendments in providing much-needed market transparency and the plan of setting up a REIT market in the country.
“On the optimistic front, real estate investors will be back again if there are signs showing further stabilisation of the rupee in the next couple of quarters.”