Stop us if you’ve heard this one before: Chinese investment in international property markets could reach new heights. The South China Morning Post reports on new estimates from investment firm Jones Lang LaSalle that China’s insurance companies could pump up to $240 billion into global real estate over the next few years, thanks to new government regulations. "We calculated that if Chinese insurance companies were to [reach their full potential], they would be capable of putting about US$240 billion into the international real-estate market over the next 10, 15 or 20 years," JLL global research director David Green-Morgan said. "They will very quickly become one of the biggest institutional players in the world."
Currently, most Chinese insurance companies invest between 1%-7% in direct real estate, compared with up to 15% for their American and European counterparts. However, new government regulations, introduced in 2012, allow Chinese companies to invest up to 15% of their assets abroad, and it appears more and more firms are embracing the increase. Jones Lang LaSalle’s research division has identified New York, London and Sydney as the most appealing markets for Chinese buyers. [South China Morning Post]