Chinese investors are expected to continue to pull away from investing in the world’s top commercial real-estate markets in 2019, adding to the downward pressure on prices from rising interest rates.
For years, the increasing flow of Chinese capital, alongside investments from other foreign countries, helped push property values higher. But now, the opposite is happening as Beijing continues its tight restrictions on capital outflows.
Chinese conglomerates and other institutional investors sold $233.3m of European hotels, office buildings and other commercial property in the third quarter of 2018, while purchasing only $58.1m of European property, according Real Capital Analytics. In the US, they offloaded more than $1bn while purchasing $231m.
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