China to continue its investment in overseas real estate

According to Knight Frank, Chinese outbound property acquisition doubled to almost $30bn in 2015 from the previous year, led by cash-rich Chinese insurers, financial institutions and property developers. Despite recent capital outflow and currency devaluation, 6 out of 10 overseas property transactions were made by Chinese insurers, including Anbang Insurance's $1.95bn purchase of New York's Waldorf Astoria Hotel. Analysts predict that Chinese investment in overseas real estate will remain strong during 2016, with investors favouring traditional gateway cities such as London, Melbourne, Sydney and New York. China's strengthening of economic ties with the UK and Australia, and Beijing's "One Belt One Road" initiative, are expected to open up further opportunities for import and export via both land-based and maritime trade routes between China and Eurasia.

Anbang Insurance bought New York’s famed Waldorf Astoria hotel for US$1.95 billion last year. Photo: AP