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Chinese property buyers are becoming pickier abroad. As domestic real estate woes continue, wealthy Chinese investors are shifting focus to Japan and the UAE, while maintaining strong interest in Australia. Thailand and Malaysia have fallen from favor, according Knight Frank. The trend reflects broader caution: sales by China’s top 100 developers plunged 17.3% in 2023.
LONDON'S NEW WAVE OF WEALTH ARRIVES
London’s property market anticipates a Chinese surge. High-net-worth Chinese households able to purchase London property are expected to grow by half through 2025, according Charles Russell Speechlys, a law firm. The British capital’s Zone 4 areas are particularly attractive to Hong Kong buyers seeking value, while education remains a key driver for purchases. Britain maintains its appeal for Chinese capital, despite headwinds. London remains a primary destination, particularly for education-linked investments near universities. Chinese investors continue to target both residential developments and landmark commercial properties, though with more selective criteria than in previous years.
GREATER BAY SEES CAPITAL FLIGHT
China’s Greater Bay Area is witnessing an investor exodus. Foreign capital is retreating from the region, with investors switching from acquisition to disposal mode. The shift comes amid growing concerns over China Vanke’s $4.9bn bond commitments and persistently low investment yields.
INVESTMENT PATTERNS SHIFT BEYOND PROPERTY
Global Chinese investment patterns are transforming. Previously, up to 70% of Chinese savings flowed into real estate at home and abroad. Now, faced with economic uncertainties, investors are adopting more conservative strategies, focusing on government-approved sectors like logistics.
US PROPERTY SEES HISTORIC DROP IN CHINESE BUYERS
Chinese consumers in U.S. residential real estate hit its lowest point since 2009, with purchases dropping to $7.5 billion in 2024. Despite the decline, Chinese buyers maintained the highest average purchase price at $1.3 million, with California attracting 25% of these investments. The shift reflects both domestic Chinese market concerns and U.S. market challenges, including high prices, limited inventory, and a strong dollar that makes American properties more expensive for foreign buyers. While Chinese buyers remain the second-largest foreign buyer group after Canadians, they now represent just 11% of all international purchases in the U.S..
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