Chinese capital has been a growing force in both corporate real estate investments and individual home purchases in recent years, but things may look very different in the rooster year. The leading headlines this morning all attempt to figure out how big of an impact mainland cash has been having and what’s going to happen under the Chinese government’s 2017 game plan. Read on as we all try to figure this one out.
China’s escalating crackdown on capital outflows is sending shudders through property markets around the world.
In London, Chinese citizens who clamored to purchase flats at the city’s tallest apartment tower three months ago are now struggling to transfer their down payments. In Silicon Valley, Keller Williams Realty says inquiries from China have slumped since the start of the year. And in Sydney, developers are facing “big problems” as Chinese buyers pull back, according to consultancy firm Basis Point. Read more>>
The pace of big Chinese takeovers abroad is slowing as buyers contend with rules tightening the flow of money out of the country and increased government scrutiny at home and overseas.
Bankers say many of the record-breaking $225 billion in overseas acquisitions Chinese companies announced last year are stalled by financial or regulatory hurdles—including the country’s biggest-ever deal, China National Chemical Corp.’s $43 billion bid for Syngenta AG, a Swiss seed and pesticide maker. European regulators this month extended the deadline for their review of ChemChina’s bid a second time, to April. Read more>>
Chinese real estate investment abroad rose by more than half last year to a new high, highlighting the potentially disruptive impact of tighter capital controls imposed late in the year to discourage outbound money flows.
Overseas investment from China in residential, commercial and industrial property totalled $33bn in 2016, up 53 per cent from a year earlier, according to global real estate group JLL, as Chinese buyers snapped up office buildings, hotels and residential land. Read more>>
Mainland Chinese companies have piled into Hong Kong property in 2015-2016, outbidding some of the territory’s most powerful developers to gobble up 29 percent of land sold for development in one of the world’s most expensive real estate markets, according to new industry figures.
That is almost a six-fold increase from their purchases of just 5 percent of the land sold in public land auctions in the years 2013 and 2014, the data from real estate broker Midland Realty shows. Read more>>
Turbulent global conditions and Donald Trump’s presidency pose the biggest risks for Chinese developers in Australia as the year of the Rooster kicked off on Saturday.
Many major Chinese developers like Dalian Wanda, Aqualand and Shimao/B1 Group were positive about the Australian property market and would not slow down development, but said they were wary of the relationship between China and Australia and the impact of Trump’s policies. Read more>>
Hang Lung Properties chairman Ronnie Chan Chi-chung labelled recent prices at government land auction “irrational fever” and cautioned that his own company is having trouble replenishing its land bank in the city amid aggressive bidding from deep-pocketed mainland rivals.
“In the 1980’s the market was dominated by British firms. Then Hong Kong firms took a growing share in the industry in 1990’s, and now its turning to mainland firms. It is a natural development,” said Ronnie Chan Chi-chung, chairman of Hang Lung Properties on Thursday. Read more>>
Tune in again tomorrow for more news, and be sure to follow @Mingtiandi on Twitter for headlines as they happen.