(ECNS) -- Chinese investment in overseas property markets has hit a record high amid a downturn in domestic real estate.
Statistics show that overall investment in overseas property markets reached nearly 100 billion yuan ($16 billion) in the first quarter this year, exceeding the overall investment last year. The figure is expected to exceed $30 billion in 2014.
Country Garden allocated AUD$73 million in February to buy properties in northwest Sydney, Australia, while China Vanke kicked off a landmark project in Manhattan at the same time. In July, Wanda Group announced it would invest US$900 million to build a five-star hotel in Chicago.
“The domestic property industry is entering a transition period. We have to explore new development models, and overseas property markets are a supplement to the domestic real estate market," said Hu Weimin, vice president of Beijing Capital Lands.
In addition, the immigration rush in recent years has created an important market for overseas property investment, Hu added.
However, Zhou Biwen, director of the Real Estate Research Institute at the Beijing Institute of Technology, said that overseas investment carries risks, and that investors should consider markets, policies, exchange rates and cultures.
“The overseas market is not covered with gold, and each project should be evaluated in detail,” he said.
