Trouble at home just makes Chinese real estate investors keener

If you are worried that economic troubles might lessen the appetite of Chinese real estate investors for overseas property, you’d be wrong. Investors in mainland China are increasingly turning their attention abroad when it comes to putting their money into real estate. In fact, it has been estimated that Chinese insurers will make $73 billion worth of cross-border property deals between now and 2019. In terms of the total value of assets held by Chinese companies overseas, the figure by 2019 will be five times that of 2014 (source: Mingtiandi).

Here are three examples that show Chinese real estate investors are as keen as ever to buy property overseas.

CIC International pays $2.5 billion for Australian property portfolio

The Chinese Investment Corporation became the buyer in the largest ever direct office sale to take place in Australia when it offered $2.5 billion to purchase a portfolio of assets from Morgan Stanley Real Estate Investing. The seller, operating through its Investa platform, agreed to sell stakes in nine buildings located in Brisbane, Melbourne and Sydney. CIC now has a quarter stake in the Australian headquarters building of Deutsche Bank: 126 Philip Street, considered by many to be one of the finest examples of office towers in Sydney (source: The Australian).

Over $300 million invested in Boston’s Pier 4

In April it was announced that two Chinese companies, Ping An Insurance Group Co of China Ltd and China Life Insurance Co Ltd, would each contribute $167 million towards the first phase of the redevelopment of Pier 4 in Boston. The $500 million redevelopment, which covers half a million square feet, includes 100 luxury condos and a 13-story office building with two-story underground car park. Chinese money accounts for over two thirds of the total investment (source: Reuters).

Chinese real estate investment in Canada picks up

Compared to the $10.5 billion worth of Chinese real estate investments that have taken place in America over the last five years, China’s contribution to Canadian real estate has been small.

However, two recent deals have seen the value of Chinese real estate investment leap up. In October an unknown investor offered $122 million for the United Kingdom building in Vancouver, which works out at $600 per square foot for the 212,000 square foot building, or about twice the average market value. In August the Anbang Insurance Group Co. Ltd. spent $100 million on a land lease for 70 York Street, Toronto, which would allow them to control the HSBC building located there (source: Financial Post).

These are just three of the many Chinese real estate deals made in 2015. The Chinese appetite for overseas property as a safe investment option is greater than ever. With the right marketing and an understanding of the needs of the Chinese real estate investor, your project could attract some very lucrative interest from the Asian market.

(Image source: Image created by Greenleaf Designs |