Investment by Chinese firms in overseas real estate have grown spectacularly over the last three years, up from US$900 million in 2010 to US$5.6 billion in 2012, according to new figures. This year investment volumes have already exceeded those levels thanks to many high profile deals in key gateway cities, says the latest report from Savills Research China, with key cities like London, New York and Sydney regarded as safe investments.
The firm adds that this trend is likely to continue for many years to come as China further integrates with the rest of the world and new sources of capital gain traction in overseas markets. Investment volumes could conservatively continue to grow at 20% per annum over the next decade.
After being a net recipient of investment for more than two decades, China is beginning to send its money offshore. While the percentage of Chinese nationals investing overseas is small, the absolute number compared with the population of some of the first markets they invested in is huge. For example, property markets in Hong Kong and Singapore were inundated with wealthy Chinese buyers from 2008 to 2012, resulting in such a rapid growth in prices.