Chinese Developers Are Growing Wary Of America's Property Market

New York skyline
New York Skyline

Chinese real estate developers are re-evaluating their strategies in the US market, some lowering their US projections with others tabling their projects entirely.

Xinyuan Real Estate managing director John Liang said he sees a real danger in the US property market, sensing the real estate cycle is nearing its peak, the Wall Street Journal reports. Another investor, Soho China CEO Zhang Xin—whose family owns a stake in the General Motors Building—is wary of high prices in some US markets, particularly in New York. Taking into account New York’s major high-end condo glut, analysts say Chinese investors could suffer some big hits.

Chinese investment in US real estate since 1990 is nearing $12.6B, but these reservations—coupled with Beijing’s plans to tighten rules regarding Chinese investment capital leaving the country—may cause investors to start pulling back. [WSJ]

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