August 31, 2017
The volume of Chinese real estate investment in the U.S. ebbed during the first half of 2017, though Canadian investors reclaimed the lead as the largest source of cross-border investment capital. RCA’s latest report of capital flows showed declines coming in from China, mainly as a result of newly-approved regulations aimed at controlling overseas CRE outflows.
RCA real estate economist Jim Costello notes, capital flows from Asia were up for H1 2017, as investors from Japan, Singapore and Hong Kong stepped up allocations, though capital from the Middle East continued to decline.
Capital flows overseas were driven by higher average yields on offer in the U.S., and excess savings at home. Chinese capital was the largest source of cross-border capital into the U.S. in 2016.
Cross-border investors represented 13% of all U.S. transaction volume by mid-year 2017, a decline from 16% a year earlier.
H1 2017 Top Cross-Border Countries
– Canada: $8.8 billion
– China: $5.4 billion
– Singapore: $3.5 billion
– Germany: $2.3 billion
– Japan: $1.4 billion
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