Despite the government's strict capital controls, Chinese spending on overseas property reached a historic high last year.
According to data from Colliers International, in 2017, China's overseas real estate investment reached 39.5 billion USD (approximately 250.2 billion RMB), an increase of 8% compared to 2016, with significant growth trends in investments in Europe and Asia.
Colliers International reported that investment in European property assets surged by 336% to 18.7 billion USD (approximately 118.4 billion RMB), which includes the China Investment Corporation's (CIC) acquisition of Logicor logistics business from Blackstone for 14.4 billion USD (approximately 9.11 billion RMB). Excluding this transaction, China's real estate investment in Europe remained stable.
Colliers International believes that these changes reflect the growth momentum of the Chinese economy and the strong performance of the Renminbi.
According to personnel from Knight Frank, the strong growth of investments in the UK is not surprising given the investment growth in other parts of Europe.
Historically, the UK (London) has typically been the preferred investment destination for international investors outside of Europe. In 2017, the total value of real estate transactions in the UK surged to 10.2 billion USD, ranking second, with a year-on-year increase of 574% compared to 2016.
Additionally, Colliers International's research found that in 2017, China's real estate investment in Asia was primarily concentrated in relatively safe "gateway" markets, with Hong Kong ranking first at 6.9 billion USD (43.64 billion RMB), attracting 55% of the total investment from mainland China.
Given the recent tightening of overseas investments by state-owned enterprises outside of the "Belt and Road" initiative by the Chinese government, Colliers International believes that investments related to the "Belt and Road" initiative are expected to increase.
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