China property investors spend less abroad
CHINA’S real estate outbound investment in the first six months fell to its lowest level since 2015, property consultancy firm Cushman & Wakefield said in a report, mainly hurt by tighter controls on lending.
Chinese institutional investors spent US$4.3 billion on property overseas in the second quarter, said the report published on Wednesday, a 45 per cent slide from a year ago. For the first half, volume fell 37 per cent to US$9.9 billion. This led Cushman & Wakefield to downgrade its forecast on the full-year investment volume to be 40 to 50 per cent lower than 2017, compared to an original forecast of a 30 to 40 per cent drop.
“Things may get worse before they get better,” said Jason Zhang, head of China outbound investment & advisory services at Cushman & Wakefield. “Geopolitical issues will negatively impact investment, mainly in the US market for the remainder of the year.”