Speculation that Chinese investments in U.S. real estate would plummet after Beijing enacted tighter regulations on outbound investments last August has proved correct
There was a 55 percent drop in new Chinese investment in U.S. commercial real estate in 2017 compared with the year before, as spending fell from $16.2 billion in 2016 to $7.3 billion last year, according to a report earlier this week by real estate brokerage Cushman & Wakefield.
China fell from first to third place among foreign investors in the U.S.,behind Canada and Singapore.
While investor activity has declined noticeably, established Chinese investors who already have a presence in Southern California “remain active pursuers of large high-profile offerings in this region,” property broker Jeffrey Cole of Cushman & Wakefield said.
“We still expect Chinese capital to flow into Southern California, albeit at a reduced and slower pace in the short term,” he said.
BY Roger Vincent Vincent writes for the California News Group.
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