CHINA GLOBAL PROPERTY DEALS MAY FALL 84PC
Crackdown on capital outflows rippling across the world, says Morgan Stanley
CHINA’S crusade against capital outflows and leverage has ensnared some of the nation’s largest property investors, including Anbang Insurance Group Co — the owner of New York’s iconic Waldorf Astoria hotel.
The crackdown is rippling across the world and will likely spur an 84 per cent slump in Chinese overseas property investment this year and a further 18 per cent drop next year, according to a report from Morgan Stanley.
The most vulnerable real-estate markets are those in the United States, the United Kingdom, Hong Kong and Australia, with office properties the most exposed, analysts including economist Robin Xing wrote.
Manhattan is a particular worry, with about 30 per cent of transactions in the borough that is home to Wall Street involving Chinese parties this year.
In Australia, China is the largest foreign real estate investor, accounting for as much as 25 per cent of office property transactions in the last two to three years, according to Morgan Stanley. Bloomberg