In the face of tightening capital constraints, outbound Chinese institutional investment could fall by up to 40% this year, according to Cushman & Wakefield.
The real estate consultancy’s latest Chinese investment intentions survey suggests that capital flows into overseas real estate will fall 30-40% on 2017 levels.
The worst hit sectors are expected to be premium office towers, retail and hotels, particularly in the US, Australia and Canada.
Conversely, offshore investment in logistics and development sites is expected to increase in 2018.
Cushman & Wakefield found that half of Chinese institutional investors faced difficulty in obtaining foreign currency, and that 40% were finding it “extremely difficult” to convert to foreign currency to invest overseas.