Chief executive of developer Soho China Zhang Xin has said real estate assets in international cities are too expensive.
As reported by the Wall Street Journal, Zhang said on Monday at the opening of Soho China’s latest office in Shanghai: “I would be holding cash now because if you look around, outside of China, assets are just so expensive because of all the rounds and rounds of quantitative easing.
“Today, prices are so expensive. I wouldn’t be comfortable making any real estate investments in these major cities around the world.”
According to the WSJ, she said that her company was not interested in making further investments in land in China and would focus on leasing existing assets.
According to CBRE, Chinese outbound capital flows into real estate exceeded $10bn in 2014.
While Chinese companies and individuals have invested heavily over the past four years, quantitative easing policies in Europe and the US have led to rising prices through cheap capital.
