Chinese investors could exit US in favor of Asia

The days of yuan depreciation may be over

New York /
Mar.March 06, 2017 09:00 AM

After two-year stretch during which the yuan depreciated against the dollar, the Chinese currency is on the rise in 2017, which could lead to a shift away from New York City real estate.

“The bulk of yuan depreciation has probably already happened, and if that’s the case there is less incentive for Chinese investors to place money in dollar-denominated assets,” Andrew Haskins, director of Asia research and advisory services at Colliers International, told Bloomberg.

Haskins added that political concerns such as President Donald Trump’s protectionist policies “may also slow the pace” of Chinese investment in the United States, especially if his rhetoric starts to materialize as policy.

Over the past two years the yuan has declined 13 percent against the dollar, but it’s gained almost 1 percent so far in 2017. At the same time, most other Asian currencies have strengthened, most notably the Korean won, which has appreciated 4.3 percent.

Asian investment in U.S. real estate peaked at $33 billion in 2015, but slid by 12 percent last year to $29.1 billion.

Chinese insurance firms, some of the most active buyers in the past few years, have been notably quiet so far in the first few months of 2017. They haven’t made any acquisitions thus far in 2017, amid a sweeping movement to stave off outbound capital and limit speculation.

Haskins said he expects Chinese investors to turn to Asian markets. He added that while the portion of China’s investment within Asia – 17.4 percent in 2016 – is still not dominant, Chinese investors will still look to place their money in foreign real estate markets and “increasingly directed towards Asian rather than non-Asian markets.” [Bloomberg]Rich Bockmann


Related Articles

arrow_forward_ios
President Donald Trump and 1483 Shore Parkway in Brooklyn (Getty; Google Maps)

Lawsuit targets Trump for “fraudulent” rent overcharge scheme

Lawsuit targets Trump for “fraudulent” rent overcharge scheme
Blackstone's Jonathan Gray (Getty; iStock)

Blackstone acquires $358M warehouse portfolio

Blackstone acquires $358M warehouse portfolio
Simon and David Reuben with 20 East 76th Street (Getty; Google Maps)

Reuben Brothers pick up Surrey Hotel at a discount

Reuben Brothers pick up Surrey Hotel at a discount
Multifamily sector beating the odds

Multifamily sector beating the odds

Multifamily sector beating the odds
The home improvement retailer will stay in it's Flatiron location (Google Maps)

Home Depot extends lease for Flatiron store

Home Depot extends lease for Flatiron store
Hewlett Packard Enterprise Co. CEO Antonio Neri (Unsplash; Hewlett Packard Enterprise)

Hewlett Packard Enterprise leaves Silicon Valley for Texas

Hewlett Packard Enterprise leaves Silicon Valley for Texas
Convention centers are a losing proposition for private developers, but local governments see them as a way to attract business tourism. (iStock)

Convention centers boom despite shows going virtual

Convention centers boom despite shows going virtual
Charlie Kushner and Laurent Morali with Commons at White Marsh Apartments in Maryland (Photos via Sasha Maslov and CommonsatWhiteMarsh)

Kushner looks to unload multifamily properties for $800M

Kushner looks to unload multifamily properties for $800M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...