As a result of continued poor economic growth, Chinese investors have been pushing into higher yielding opportunities abroad, especially in real estate. In fact, according to a new report from the Asia Society and a California based real estate consultancy, Chinese investors have become the largest foreign buyers of U.S. property after pouring billions into the market in search of safer offshore assets.

 

After a substantial surge in residential and commercial real estate from Chinese investors in 2015, the five-year investment total has ballooned to $110 billion. “The sheer size of that total has helped the real estate market recover from the crash that began in 2006 and precipitated the 2008 economic crisis,” notes the report. And, despite a recent clampdown on capital outflows, that $110 billion figure is expected to double this decade.

 

Between 2010 and 2015, Chinese investors bought more than $17 billion of U.S. commercial real estate, with half of that spent in 2015 alone. Another $93 billion was spent on U.S. homes across some of the most expensive markets, including Los Angeles, Seattle, San Francisco, and especially New York where Anbang Insurance bought the Waldorf Astoria of $1.95 billion.

 

Chinese business groups, such as Greenland and Fosun have been activity buying residential and commercial hotspots there, too, including the General Motors building, the Atlantic Yards projects, 717 Fifth Avenue, and 1 Chase Manhattan Plaza.

 

Better yet, the buying spree isn’t expected to slow. Long-term economic drivers are expected to remain quite strong, as wealthy investors seek high-yielding opportunities in a low-interest rate environment, and as a $1.6 trillion Chinese insurance industry seeks to invest in even more real estate projects - as noted by Asia Society.

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