{"id":37213,"date":"2016-12-06T17:28:30","date_gmt":"2016-12-06T10:28:30","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-impact-might-chinas-capital-controls-have-on-global-property\/"},"modified":"2016-12-06T17:44:32","modified_gmt":"2016-12-06T10:44:32","slug":"what-impact-might-chinas-capital-controls-have-on-global-property","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-impact-might-chinas-capital-controls-have-on-global-property\/","title":{"rendered":"What impact might China\u2019s capital controls have on global property?"},"content":{"rendered":"


\n3 possible scenarios to look out for
\nPassenger train at the Beijing Capital International Airport. chinahbzyg\/Shutterstock
\nChina is renewing its campaign to constrict capital outflows.
\nThe mainland is abuzz with speculation that Beijing will deepen its scrutiny of outbound investments. Real estate deals totaling more than USD1 billion will face particularly strict monitoring, Forbes reported.
\nClues to such new policies came last week in a joint announcement by China\u2019s National Development and Reform Commission, The People\u2019s Bank of China, The Ministry of Commerce, and The State Administration of Foreign Exchange.
\nHere are three scenarios that could unfold if the rumored capital controls were to come to fruition:
\nShift in demand
\nApproval periods will certainly lengthen for Chinese property buyers once the clampdown is in place. This will spell heightened demand for core commercial assets in domestic tier I and selected tier II cities, said Sam Xie, head of research for Asia Pacific and China at CBRE. \u201cThe prolonged low interest rate environment continues to motivate Chinese investors to purchase commercial assets in the domestic market.\u201d
\nMore: Has China fallen out of love with American real estate?
\nUS real estate might be unscathed
\nA billion dollars is still a relatively high threshold for capital controls, given that 70 percent of Chinese outbound property deals between 2013 and the first half of 2016 are worth below this limit, according to Julian Jiang, associate director of China research at CBRE. \u201cOnce the expected new restrictions are in place, Chinese investors may simply opt to engage in a higher number of smaller deals below the stipulated maximum investment amount,\u201d he said. For perspective, the minimum property investment to obtain an EB-5 immigration visa in the US is only between USD500,000 and USD800,000.
\nSmaller deals in Europe and Asia
\nCapital controls will most certainly reduce the sizes of Chinese deals in Europe and Asia. Six of the 10 largest outbound property transactions in the past three years were by Chinese state-owned enterprises, and they mostly transpired in these regions, according to CBRE. \u201cAny restrictions on transaction size would force SOEs to reduce the size of their acquisitions and adopt a more careful and strategic approach,\u201d Xie opined.
\nRead next: Hong Kong\u2019s newest expat neighborhood keeps on getting cooler
\n
\nSource : property-report.com
\nRead more…What impact might China\u2019s capital controls have on global property?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

3 possible scenarios to look out for Passenger train at the Beijing Capital International Airport....<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-37213","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9Gd","jetpack-related-posts":[{"id":54939,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-sign-of-capital-controls-easing-as-chinas-overseas-shopping-spree-continues-experts-say\/","url_meta":{"origin":37213,"position":0},"title":"No sign of capital controls easing as China\u2019s overseas shopping spree continues, experts say","date":"May 16, 2017","format":false,"excerpt":"\r Beijing shows no signs of loosening its capital controls on overseas investments even as more Chinese firms pour into the European and American real estate market. \u201cI don\u2019t see any relaxation of policies, it\u2019s still very strict,\u201d said Paul Guan, a partner with global law firm Paul Hastings, which\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":64200,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/china-firms-lose-appetite-for-hong-kong-assets-after-beijing-tightens-capital-controls\/","url_meta":{"origin":37213,"position":1},"title":"China firms lose appetite for Hong Kong assets after Beijing tightens capital controls","date":"August 22, 2017","format":false,"excerpt":"\r Mainland Chinese companies, the big money behind Hong Kong\u2019s real estate market since 2015, will see a decline in their investment appetite for the city\u2019s assets following Beijing\u2019s tighter capital controls on overseas investments, pushing down property prices over the medium term, say analysts. Even though individual mainland Chinese\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":102076,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/gaw-capital-ready-to-sell-beijing-complex-sources-say-in-what-would-be-the-biggest-property-deal-in-chinas-capital-city-this-year\/","url_meta":{"origin":37213,"position":2},"title":"Gaw Capital ready to sell Beijing complex, sources say, in what would be the biggest property deal in China\u2019s capital city this year","date":"December 7, 2018","format":false,"excerpt":"\r Hong Kong-based Gaw Capital Partners is ready to sell a Beijing landmark complex to a Chinese firm backed by property tycoon Zuo Hui, two sources said, pocketing a handsome profit after acquiring the asset just over four years ago from Hong Kong mogul Richard Li Tzar-kai and upgrading it.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":39811,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/sales-of-hong-kong-investment-property-expected-to-fall-as-beijing-tightens-capital-controls\/","url_meta":{"origin":37213,"position":3},"title":"Sales of Hong Kong investment property expected to fall as Beijing tightens capital controls","date":"January 6, 2017","format":false,"excerpt":"\r Sales of top quality commercial buildings costing multi-billions of Hong Kong dollars are expected to fall this year as Beijing\u2019s tightened capital controls could stall mainland corporates acquiring overseas assets. The latest policy will reduce the number of deep-pocketed mainland enterprises making property purchases in Hong Kong, which has\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":15730,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/chinas-property-buying-spree-in-overseas-markets-hit-by-capital-controls\/","url_meta":{"origin":37213,"position":4},"title":"China\u2019s property buying spree in overseas markets hit by capital controls","date":"June 7, 2016","format":false,"excerpt":"\r Tighter controls on capital outflows has cooled the surge in outbound property deals by cash-rich Chinese companies , analysts said.\r \r Source : South China Morning Post\r Read more...China\u2019s property buying spree in overseas markets hit by capital controls","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":62679,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/decline-in-chinas-outbound-property-investment-to-hit-prices-from-hong-kong-to-london-says-morgan-stanley\/","url_meta":{"origin":37213,"position":5},"title":"Decline in China\u2019s outbound property investment to hit prices from Hong Kong to London, says Morgan Stanley","date":"August 3, 2017","format":false,"excerpt":"\r Tighter capital controls imposed by Beijing are slashing China\u2019s outbound property investment, affecting property prices from London to Hong Kong, Morgan Stanley said in a recent report. The report said outbound property investment by mainland Chinese firms was already down 82 per cent from a year ago, and is\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/37213"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=37213"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/37213\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=37213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=37213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=37213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}