Chinese investors continue to serve as the top property purchasers in the United States, leading Asia as a major supplier of capital for American real estate.
The current state of the US investment landscape is heavily influenced by real estate capital flows from across the Pacific Ocean. Asia acquired $7 billion of commercial real estate assets in the country in 2014, more than any other region. This represents nearly one-quarter of all cross-border capital acquisitions of US real estate last year.
Buyers from the Chinese mainland and Hong Kong led all others, accounting for more than half of Asian investment in this market.
“Chinese spent $16.5 billion in the global real estate market in 2014, up 46 percent year-onyear, and we are expecting to see non-stop growth over the next decade,” said Jane Wu, president of Panorama Holdings, during a roadshow in the city on May 25.
Wu added that buying property could be the shortest path to success for those newly arrived Chinese investors who are not familiar with the business environment or legal regulations overseas.
The US attracts more foreign direct investment than any other country in the world. Last year, it welcomed some $92 billion, adding to an estimated cumulative total of $2.8 trillion as of 2013, according to figures released by the roadshow.
China is among the fastestgrowing sources of investment, with annual growth exceeding 41.5 percent from 2009 to 2013.
“With 320 million diverse consumers, companies of all sizes with all manner of products and services can find their market in the US. You can find work tools, customers, resources and a welcoming environment, everything you need to be successful,” said Felicia Pullam, director of Outreach, at the same SelectUSA roadshow.
Pullam said she was in Shanghai to help Chinese investors find reliable data and information, connect to the right people at a local level in the US, and figure out how to navigate the regulatory system there.
The US has recently been attracting inbound investment in a wide variety of industries, including information and telecommunications, professional and financial services, mining and agriculture.
“Now we’re in the information and technology age, which makes telecommunications, e-commerce and digital infrastructure more promising areas in the US for Chinese companies to invest in,” said Raymond Cheng, CEO of SoZo Group.
The 11-day roadshow took in cities along the Pearl River Delta as well as Hong Kong, Shenzhen, Dongguan, Guangzhou in Guangdong province, Shanghai, and Shenyang in Liaoning province from May 18 to 29.
US-run Economic Development Offices (EDO), regional EDOs and their partners got a chance to meet with potential investors and companies in China.
In Shanghai, American officials promoted investment opportunities in key industry sectors like aerospace, healthcare, construction, travel and tourism.