Beyond gateway cities: Chinese investors pour billions into overseas real estate
Recent years have seen a tremendous surge of Chinese investment into overseas real estate markets. From 2009 to 2014, the total value of Chinese outbound property investment skyrocketed from US$600 million to an estimated US$15 billion.
So far, the thrust of this investment has been focused in gateway cities of the United Kingdom, the United States and Australia, with Australia seeing the strongest growth, registering a year-on-year increase of more than 60 percent in 2014. In the United Kingdom, investments are mostly by institutional investors in income-generating commercial properties along the River Thames in London. In the United States, Chinese capital has been targeting assets in gateway cities, such as New York City and Los Angeles (see “Chinese outbound real estate investment” graph, page 30). This surge has been fuelled by a number of key push-and-pull factors. Knight Frank investigates the key drivers of and new trends for these Chinese outbound rea