Chinese investor appetite for US property is waning. In that, some see opportunity.

Uncertainties about the trade war are keeping investments down

National /
Nov.November 07, 2018 10:30 AM

(Credit: iStock)

The Chinese capital that fueled the purchase of luxury apartments and large office buildings from coast to coast in the U.S. is drying up.

Hong Kong and mainland China investments in the U.S. property market totaled $4.42 billion through October, compared with $6.81 billion in all of 2017, according to the South China Morning Post. Investor appetite has cooled amid uncertainties about the trade war between the two countries.

“Under the trade war you won’t expect too many foreign buyers looking at the [property] market anyway, and basically all Chinese investors have disappeared,” Antonio Wu, Colliers International deputy managing director for capital markets and investment services, told the South China Morning Post.

Chinese inquiries about U.S. property dropped 11.4 percent in September, the report said.

Still, some investors see it as a window of opportunity.

“In my opinion, property is still a safe haven in many markets as long as the investment is producing a decent return as the debt cost will continue to rise,” said Wu.

The report comes has the US housing market has slowed. Sales of both existing homes and new construction homes have fallen.

Earlier this year, a report noted that retreating Chinese buyers could hurt U.S. property values. Following Beijing’s tightening of capital controls, Chinese investors sold $1.29 billion worth of U.S. commercial real estate in the second quarter, while purchasing only $126.2 million. [SCMP] — Meenal Vamburkar


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Signature Bank president and chief executive officer Joseph DePaolo (iStock)
“It’s a good time to make loans:” Multifamily lender smashes earnings record
“It’s a good time to make loans:” Multifamily lender smashes earnings record
Brian Kingston, managing partner & CEO, Brookfield's Real Estate Group and Brookfield Property Partners, in front of Two Blue Slip in Greenpoint (Brookfield Property Partners, Two Blue Slip, iStock)
Brookfield scores $330M refi at Greenpoint Landing
Brookfield scores $330M refi at Greenpoint Landing
Sam Chandan will head NYU Stern’s real estate programs  (samchandan.com, iStock)
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
NYU Schack Institute Dean Sam Chandan stepping down to join Stern
Renderings of 80 South Street (Oceanwide Holdings, iStock)
Chinese developer defaults on $175M loan for languishing Manhattan supertall site
Chinese developer defaults on $175M loan for languishing Manhattan supertall site
1009-1011 South Congress Avenue and Turnbridge's Andrew Joblon (Music Lane ATX, LinkedIn)
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Exclusive: Turnbridge Equities closes $500M Texas recap deal
Madison Realty Capital raises $2B for latest debt fund
Madison Realty Capital raises $2B for latest debt fund
Madison Realty Capital raises $2B for latest debt fund
arrow_forward_ios

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

Loading...