But a real estate services firm expects Chinese capital to remain a force in US markets
Stricter capital controls and regulations have driven an estimated 55% decrease in Chinese investment into US commercial real estate in 2017, according to the 2017 China-US Inbound Investment Capital Watch report released by real estate services firm Cushman & Wakefield.
The firm said fears that Chinese investments would plummet following the August implementation of a framework regulating outbound investments by China’s State Council have been well-founded. The report found that Chinese investments totaled $7.3 billion this year, sinking from the $16.2 billion total during the 2016 buying spell.
As a result, China fell from its rank as the US’ top investor, falling to third place. Canada reassumed the number-one spot, with Singapore at number two.
The total volume of deals over $1 billion dropped 75% year over year in 2017, while the total volume of deals under $250 million declined only 12%.
Experts at Cushman & Wakefield, however, expect that Chinese capital will continue to be a force in US markets.
“Although Chinese investor activity has been dampened due to government policies on currency export, we believe that the acceleration of the US economy will continue to provide international investors with a compelling investment opportunity in 2018,” said Janice Stanton, executive managing director of capital markets at Cushman & Wakefield.
