The Real Deal New York

Chinese RE investors are still buying despite Beijing’s efforts to stop them

In fact, 2017 might even be a record-breaking year
September 30, 2017 10:59AM

Despite the crackdown, brokers are reporting increasing overseas property deals from Chinese buyers. (Victor Dubreuil, back; Kiwiev/Wikimedia Commons, front)

The deals are smaller, but the demand from Chinese real estate investors is as strong as ever brokers say.

After Beijing began cracking down on the outflow of capital investment this year, it seemed like the market-driving demand from Chinese buyers may be coming to an end — a big concern for markets like New York where in 2016 alone $14.3 billion came from Chinese investors.

However, brokers from Knight Frank, Savills and Chinese brokerage Shiju are reporting increasing overseas property deals from Chinese buyers, according to Bloomberg — though the value of deals have taken a hit. The typical buyer is spending up to $450,000 for a U.S. home, generally in cheaper markets such as Texas or Florida, according to Shiju chief executive Eric Lam.

Knight Frank’s data showed sales values tripled in the second quarter and even pointed to the possibility of 2017 being record-breaking year.

When asked how buyers are getting their money out of China, sales agent Regina Li told Bloomberg, “clients all have their ways.”

[Bloomberg News] — E.K. Hudson