Chinese investment in US real estate : potential growth and constraints
Chinese investment in United States real estate : potential growth and constraints
Massachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development.
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With the strong drive of seeking stable returns and hedging against a slowing economy, Chinese investors have extended their investment aggressively around the world to diversify their holdings. In 2016, according to JLL's Global Capital Flow, Chinese investment hit the new height in the overseas property markets, rushing US$33 billion into real estate investments. It led to an increase of nearly 53% y-o-y (Morgan, 2017). Among those, almost half of the transactions happened in the U.S (Wildau, 2017). In the past years, high profile deals were always unsurprisingly related to Chinese investors' name in the U.S. 2017, however, has been whirlwind for Chinese investors in the U.S. Along with the election of Donald Trump as the President of the United States, the Chinese government imposed capital control on foreign investment. Although the mainstream is saying that the new administration of the U.S. is not considered a significant threat to the investment and the temporary policy of capital control would not outweigh the long-term strategy of investment overseas, the uncertainties and prolonged procedure of the outflow capital does delay the pace of outbound investment. This thesis is aiming to dive into the fundamentals of Chinese outbound investment in the U.S. real estate market. It will focus on the primary investment strategies the Chinese investors are using, including the selection of property type, the size of the deal, geographic targeting, and local partnership. This thesis will also conduct interviews and case studies with institutional investors who have a long-term strategy of investing in the U.S. market. The case studies will not only address the above questions but also seek different perspectives on their strategies for dealing with the current business climate. After the analysis, this thesis intends to figure out potential constraints and opportunities for Chinese investors and their partners in the U.S. real estate market.
Thesis: S.M. in Real Estate Development, Massachusetts Institute of Technology, Program in Real Estate Development in conjunction with the Center for Real Estate, 2017Cataloged from PDF version of thesis.Includes bibliographical references (pages 45-46).
DepartmentMassachusetts Institute of Technology. Center for Real Estate. Program in Real Estate Development; Massachusetts Institute of Technology. Center for Real Estate
Massachusetts Institute of Technology
Center for Real Estate. Program in Real Estate Development.