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Chinese Investment Will Continue To Slow, But Not Dissolve

Rendering of Hudson Yards in Manhattan

Concerns regarding a decline in Chinese investor capital in the U.S. continue to mount.

But it is unlikely investment activity will completely dissolveaccording to RCA Analytics. On average, Chinese foreign real estate investment had tripled each year since the global financial crisis, but acquisitions declined 15% year-over-year in the first half of 2017. 

A number of deals remain in the pipeline, including the CIC acquisition of the Logicor portfolio along with 12 other deals that will total approximately $17B.

And despite declines in Chinese investment, foreign investment from the Asian market remains strong.

Mitsui Fudosan recently announced the acquisition of a 90% stake in 50 Hudson Yards, the 2.9M SF office development based in New York City.

Approximately $45.2B worth of Asian capital went into the global property market in the first half of the year, an increase of 98% from the year before, according to CoStar.

And while there may be fewer foreign investments in the U.S. market this year, the transactions have been larger, CoStar reports.

Chinese investors may also pivot when it comes to investment in the U.S. market. Many are turning their focus to tech and biotech and investing in incubators because these types of investments are encouraged and supported by the Chinese government.