China is Becoming a Major Player in US Real Estate

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China’s national economy has struggled greatly since the economic collapse in 2007-2008. Their GDP has dropped consistently from 9.2% in 2008 to 7.7% in 2012 and is expected to fall another 1% over the next four years. In an effort to improve their national economy, the Chinese government lifted restrictions that once prevented Chinese nationals from investing money in foreign assets. Most speculate that this isn’t a temporary fix, however, and that Chinese money in US capital markets is here to stay. Many investors have jumped at this opportunity and have begun acquiring as many overseas assets as possible.

It seems as those the US is one of the prime targets for Chinese investors. The US real estate market attracted for than $3 billion from Chinese investors last year, an increase of over 900% from 2012. This $3 billion makes them the second-largest overseas property buyer in the US. The majority of Chinese investment went to one of two things – core office buildings and large-scale, new developments. The office sector accounted for 85% of all Chinese investment in 2013, and most speculate that this trend will continue. More Chinese investors are expected to enter the overseas investment game in 2014 and could generate as much as $10 billion in investments by the end of the year.

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  1. Jacie Thompson  June 8, 2016

    That’s surprising to hear that the real estate market increased 900% from 2012-2013 based off of Chinese investments. I never even knew China invested in US real estate in the first place. With this increase of Chinese investment, has there been an increase of Chinese citizens living in America?

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