Crashing Chinese markets could be boon for US real estate

2016-02-01
China

China's GDP only rose 6.9% in 2015. Shanghai composite index dropped 20% from last Dec, and it's now 40% lower than the peak six months ago. Under this slowing and volatile economy, Chinese investors start to look at safe heaven markets, especially London and the US.  Real estate seems benefit most from the trend. Chinese investment in US commercial real estate market reached $8.5 billion from 2005 to March 2014. It's risky, but a sophisticated Chinese investor can find the risk-adjusted return is higher than what they can earn in China. Chinese institutional investors are more encouraged as US has waived the real estate taxes on foreign pension funds and treats them in the similar way as US pension funds. This new measure will benefit the US real estate market. Read more here.

In the Media

Forbes
Bloomberg
South China Morning Post
CNBC
iMoney
Shanghai Times
Squarefoot
Shanghai Office
Capital Weekly
The New York Times
TheStreet.com
Financial Times