Experts Say Chinese Pullback Will Not Cause Dip In Real Estate
The chief executive of one of the world's biggest real estate companies is confident that a pullback from Chinese investors would not lead to a dip in pricing.
Brookfield Property Partners CEO Brian Kingston told Bloomberg there is still strong investment coming from Europe and the Middle East, which is the driving force behind a global shift from low-yield, fixed-income assets to real estate properties.
Chinese investors, including Dalian Wanda, Fosun, HNA and Anbang, have all been under scrutiny in recent months, with regulators closely investigating their transactions in order to determine how much debt they have used to fund acquisitions. But even with tightened restrictions experts have said Chinese capital outflows are likely to continue at the same rate, just via back channels.
In March, HNA purchased 245 Park Ave. in Manhattan from Brookfield and the New York State Teachers’ Retirement System for $2.21B, one of the largest sums ever paid for a New York skyscraper.
