Investors put more capital in overseas real estate
The Chinese mainland’s outbound investment last year in commercial and residential properties surged 53 percent from 2015, hitting $33 billion, according to a report.
Research by Jones Lang LaSalle said that over the past three years investments in land, office buildings and hotels accounted for 90 percent of the overall outbound property investments.
In 2016, hotel and industrial properties were the two segments that saw the biggest investment increases. A surge in hotel buying was boosted by the purchase of Strategic Hotels and Resorts by Anbang Insurance for more than $6 billion, JLL said.
It said that Chinese mainland capital was also funneled into acquiring land, with a 44 percent year-on-year increase in global land acquisition deals. Hong Kong, Australia and Malaysia were the most popular destinations.
Diversifying investments, hedging risks and securing stable steady income were the major reasons cited for apita.