Thomas Duffell is the Asia Editor for PEI Media. Based in PEI’s Hong Kong office, he is responsible for the cohort of Hong Kong-based reporters and Research & Analytics personnel as the company’s senior editorial representative in the region. He was previously Features Editor for PEI’s private equity real estate title PERE, where he was responsible for the publication's long-form journalism and analysis.
In the face of government sanctioned capital curbs and regulatory uncertainty Chinese insurers are deploying more money into overseas real estate than ever, according to data from Real Capital Analytics.
Local insurers and developers’ share of transaction volume has risen from around 17% between 2008-2010 to 35% in 2016 due to limited investment alternatives and slower economic growth, according to data from CBRE.
Despite a sluggish economic recovery and intensifying competition among global funds China’s sovereign wealth fund is looking to continue its overseas expansion in to direct property and infrastructure.
Overall, the Asia Pacific real estate market is expected to deliver 9.8% returns in 2017, but going forward returns will stagnate without uplift from strong rental growth, the real estate investment firm has forecasted.