World economy is undergoing a new phenomenon that is quite important: the Chinese citizens are moving abroad and are investing in real estate apartments abroad. This is now becoming massive.
The thing now is that the Chinese real estate developers ae following the trend. They are moving abroad with their customer base. There is some countries where the Chinese communuties are very important and this is in the very same countries that Chinese real estate companies are moving. This is logical: follow your customer. These coutries are essentially the USA, Australia, Canada, New Zealand, Singapore and Malaysia.
Everything began in 2006, with one billion dollars invested in Russia by companies such as Shanghai Industrial Group, Ningbo United and Jinjiang, three very large real estate developers. The project was in St Petersburg and is called the Baltic Pearl project on Finland bay.
This was only a beginning an since then, all over the world, massive real estate projects have been established by Chinese investors. In New York in 2012 and 2013, Greenland Group and US Forest City Group have set a joint venture to finance a project in New York, the Brooklyn Atlantic Square. This is the largest real estate project in New York for more than 20 years. This is really an impressive project an Chinese investors are not joking when they say that they are investing. Others investment by the same group, Greenland, have been made in South Korea and Australia. In the USA, other Chinese groups are investing, such as SOHO, Vantone, China Railway, Capital Group and they are soon to be joined by more of them.
For these Chinese companies, there is an important thing there in terms of image. A Chinese company that is able to invest abroad has a higher standard in contemporary China compared with a company that is only investing in China. This type of companies gains a standard when investing abroad and this is a sign of the Chinese economy opening to the world.
The local companies in the coutries where Chinese companies invest work in close coordination on the projects. For example in Russia, the Russian authorities in oscow, St Persburg and other places have coworked on touristic investments. In Russia, the investments amounts to 3 billion dollars.
And what about the largest real estate developer in China: Vanke. Vanke is now on the US Market and is aimibg at other countries. There is a collboration with Tishman Speyer, now an US subsidiary, new developements are coming.
Most of the buyers of these projects are Chinese citizens. They are looking for property abroad and they are frightened in a way by the environment. However, they know these Chinese companies and they are ready to trust them, hence the success. The companies that have built a reputation in China can capitalize on it abroad.
This is a win win relationship since the Chinese companies too where a bit afraid of the investment. Going in countries where there are Chinese people has made everything more simple, and successful.
This is the real estate gold rush for Chinese developers…