

HONG KONG,CHINA - Media OutReach - 25 February 2019 - Mainland Chinese Real Estate Investment Overseas (MCREIO) hit a four-yearlow of US$15.7 billion in 2018, a marked decline of 63% y-o-y amid weakeningChinese investor sentiment, tightened policy control and growing economicheadwinds, according to Cushman & Wakefield Research's 2019 OutboundInvestor Intention Survey.
James Shepherd,Managing Director of Greater China Research, Cushman & Wakefield, said: "We expect that Chinese banks' real estate lending mayremain tight for much of the year ahead, creating an environment that willclearly continue to restrict deployment of mainland Chinese capital in generalirrespective of geographic location. In a time of tight liquidity back home inChina, Chinese investors are disposing of assets at a global level includingChina."
Shepherd added: "Contrary to some market commentators who have assumed thatdisposal activity in the U.S. and UK has been a direct result of prevailingpolitical turmoil, the simple fact is that outside China MCREIO's existingportfolios are heavily weighted to the U.S. and UK, and therefore disposalvolumes appear remarkably high in these markets."
Shepherd continued: "Ever popular in the hearts of Chinese investors,Australia had a strong showing, overtaking the UK for third place in terms ofreal estate investment in 2018."
Jason Zhang, Head ofChina Outbound Investment & Advisory Services, Cushman & Wakefield, said: "Survey results, particularly on sentiment by destinations,views on RMB appreciation and global gateway property prices, have shownMCREIOs are becoming more prudent and selective under the guidance of thegovernment investment policies."
Zhang added: "2019 will continue to be a 'quiet' year in terms ofinvestment volumes but expect to see more M&A activities in real estateoperation platforms together with their portfolios."
Chart 1- MCREIO Annual Acquisition vs Disposal
Source: RCA / Cushman & Wakefield Greater ChinaResearch
Chart 2- C&W Investor Intention Survey -- 2019 MCREIOSentiment by Destination
Source: Cushman & Wakefield 2019 Investor Intention Survey
Cushman& Wakefield Research's 2019 Outbound Investor Intention Survey collectedresponses from around 150 of the top Mainland Chinese Real Estate InvestorsOverseas. The survey, conducted during the final quarter of 2018, receivedresponses from 51 such investors, representing more than RMB280 billion ofoffshore capital.
Click HEREto view the full report.
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