2017 sets another record-breaking year in terms of Mainland Chinese Real Estate Investment Overseas (MCREIO), with $42.2 billion being deployed, according to Cushman & Wakefield. However, tightening outbound investment regulations took hold and resulted in first quarter 2018 being the lowest Q1 MCREIO transaction volume since 2015. Investment fell 27 percent year-on-year to total $5.6 billion for the quarter.
With 28 deals closed during the first quarter 2018, the average transaction size of $198 million was 28 percent larger than the $155 million per deal averaged over the last five years.
In first quarter 2018, MCREIO into the United States continued to trend at exceptionally low levels. Intensifying rhetoric from both the United States and China regarding their trading relationship may curb the enthusiasm of Chinese investors for state-side properties for the remainder of 2018. With the USA historically being the No. 1 MCREIO destination — accounting for 30 pe