New York, rejoice: Money continues to flee China

August marked 24th consecutive month of net capital outflows

TRD New York /
Sep.September 21, 2016 12:00 PM

Money continues to flood out of China, which should be good news for New York’s real estate market.

August was the 24th straight month of net capital outflows from China, with $51 billion leaving the country after accounting for capital inflows, the Wall Street Journal reported. The pace has slowed a bit from its peak in December and January, when more than net $140 million left the country each month.

Year-to-date, net capital outflows from China total more than $400 million, driving down the Yuan 3 percent against the Dollar. Meanwhile, China’s foreign currency reserves fell by $190 billion this year.

Many savers appear to believe that the Yuan will continue to fall in value, according to the Journal, which gives them an incentive to convert their wealth into dollars.

Chinese savers looking to get their money out of the country have been a staple of New York’s residential real estate market, helping drive up luxury apartment prices to record levels.  This year the high-end market has slowed a little, so it should be welcome news for developers and brokers that Chinese buyers don’t appear to be going anywhere.

The Real Deal reported on Monday that that Chinese institutional investors — such as Kuafu Properties TRData LogoTINY and SMI USA — are increasingly taking on luxury ground-up developments in Manhattan. [WSJ]Konrad Putzier

Related Articles


NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Here are the leading countries planting flags in Manhattan commercial real estate

Here are the leading countries planting flags in Manhattan commercial real estate

Foreign investment in US homes plummeted to $78B over the past year

(Credit: iStock)

Here’s how Chinese real estate investors and NYC broke up

What China’s warning to students studying in the US means for real estate

With Chinese investment drying up, EB-5 debt isn’t nearly as cheap