China’s outbound property buying spree will continue

Despite recent capital outflow control and yuan devaluation , analysts expect Chinese investment in overseas real estate will remain strong this year after growing dramatically last year.

According to global property consultancy Knight Frank’s latest research, total Chinese outbound property acquisition volume last year reached nearly US$30 billion, double that of 2014.

“There is significant policy support encouraging outbound investment,” Knight Frank executive director Paul Hart said.

He said Beijing’s “One Belt One Road” initiative and strengthened bilateral relationship with countries such as Britain and Australia had made many Chinese companies eager to look overseas, especially in regions that had close geographic and economic ties with China.

Knight Frank predicts strong growth in Chinese outbound investment again this year, driven by policy support and the increasing need for diversification from the slowing domestic housing market.

Hart said Chinese regulators’ curbs on capital outflow since late last year were more related to individual funds and were less problematic for institutions.