It is not new for real estate developers to look for opportunities overseas. Last year, there was a lot of speculation in the media, but if you look at the data in the first quarter of this year, you will find that developers’ going overseas may not only open up new markets, there seems to be something here. Escape the local taste.
According to a report by Jones Lang LaSalle (JLL), in the first quarter of this year, Chinese companies' overseas housing development project expenditures soared to 11 billion U.S. dollars, a surge of 80% year-on-year! The most concentrated countries are Australia, the United Kingdom and the United States.Over the same period, total investment in overseas real estate markets, including housing and commercial real estate, increased by 25% year-on-year to US$21 billion.David Green-Morgan, head of global capital market research at Jones Lang LaSalle said,
Developers invest in the housing market mainly to offset the adverse effects of domestic economic growth and the slowdown in housing price growth.In sharp contrast with overseas real estate investment, the growth rate of domestic housing investment slowed down, and the sales volume and price of commercial housing fell.
华 尔街见闻网站曾报道，今年一季度中国住宅投资同比增长16.8%，增速回落1.6个百分点，商品房销售面积同比下降3.8%，降幅比1-2月份扩大3.7 个百分点。房地产销售的季度同比增幅从去年四季度的13.7%骤降至一季度的-4.7%，新开工面积从33.1%降至-25.2%。
According to Reuters, in the first quarter of this year, the proportion of real estate investment in GDP fell from 1% for the whole of last year to 15%.
Xia Shai, the director of JLL China, pointed out:
We expect that Chinese investors with sufficient "ammunition" will continue to increase their investment interest and activities in the overseas real estate market this year. In 2014, the total overseas commercial real estate investment of Chinese institutional investors may exceed the US$100 billion mark.
In late April, the Wall Street News website mentioned that Harvest Real Estate Investment (Hong Kong) Co., Ltd., which once focused on the mainland real estate market, has suspended Chinese real estate investment and its main business has shifted to overseas. Prior to this, Li Ka-shing and his son continued to sell mainland properties since last year, with a cumulative total of over 200 billion yuan, which also attracted great attention from the market.
In fact, Chinese buyers are increasingly favoring overseas properties, and cheap house prices are indeed one reason.
According to estimates by the main international residential index PIRI of Knight Frank Law Firm, luxury apartments in Hong Kong sell for US$4100-5000 per square foot, while the selling prices in Manhattan and Melbourne, Australia are only half, at approximately US$2100-2500 per square foot.
In addition, the relatively low financing cost of overseas projects has also become one of the reasons why developers are willing to go global. Xinhua Real Estate quoted a financial institution to compare the average profit rate of the domestic and foreign real estate industry. It can be seen that the domestic profit is between 10%-15% and is showing a downward trend year by year, while the profit rate of overseas investment projects can reach 20%- Between 30%, the profit margin is evident