China Property Developers Seek US Growth

Chinese property developers are taking a lead from wealthy Chinese investors and state-owned Chinese banks by investing in US properties. Xinyuan Real Estate is planning a condominium development in a trendy Brooklyn neighborhood. “With Beijing redoubling its efforts to rein in housing prices – most recently unveiling plans for a tougher real estate capital gains tax in March – the pressure is on for China’s property developers to seek opportunities overseas,” reports Pan Kwan Yuk for the Financial Times, pointing to a signal that some Chinese continue to shift assets and investments overseas. China posted a capital account deficit of $117 billion for 2012, the first deficit since 1998. Chinese investment money is driving up property prices in Singapore, Hong Kong, San Francisco and New York. Chinese families who purchase residential real estate can access local public schools; Xinyuan targets Chinese buyers, offering referrals for financial and immigration services. – YaleGlobal