Look Out Manhattan - Chinese Foreign Real-Estate Spending Plunges 82%

Tyler Durden's picture

Earlier this month, Morgan Stanley warned that commercial real estate prices in New York City, Sydney and London would likely take a hit over the next two years as Chinese investors pull out of foreign property markets.

The pullback, they said, would be driven by China’s latest crackdown on capital outflows and corporate leverage, which they argued would lead to an 84% drop in overseas property investment by Chinese corporations during 2017, and another 18% in 2018.

Sure enough, official data released by China’s Ministry of Commerce have proven the first part of Morgan Stanley’s thesis correct. Data showed that outbound investment in real estate was particularly hard hit during the first half of the year, plunging 82%.

“According to official data, outbound investment by China’s real estate sector fell 82% year-on-year in the first half, to comprise just 2% of all outbound investment for the period.”

Overall, outbound direct investment to 145 countries declined to $48.19 billion, an annualized drop of 45.8%, according to China Banking News.

The decline is a result of a crackdown by Chinese authorities after corporations went on a foreign-acquisition spree that saw them spend nearly $300 billion buying foreign companies and assets, with China’s four most acquisitive firms accounting for $55 billion, or 18%, of the country’s total. The acquisitions aggravated capital outflows, creating a mountain of debt and making regulators uneasy. Late last month, Chinese authorities ordered Anbang Insurance Group to liquidate its overseas holdings. In June, authorities asked local banks to evaluate whether Anbang and three of its peers posed a “systemic risk” to the country’s financial system. As Morgan Stanley noted, these firms were responsible for billions of dollars of commercial real-estate investments in the US, UK, Australia and Hong Kong.

The pullback will likely be equally as devastating for residential home prices. Average sales prices for Manhattan residential real estate has continued to climb, but cracks are starting to appear. As we pointed out two days ago, 25% of homes sold in 2Q still experienced a price cut, with that number rising to 40-60% in trendy neighborhoods like the Upper East Side.

While falling real-estate prices would be an inconvenience for corrupt Chinese officials and other shady investors trying to stash their money as far away as possible from their homeland, they’d be a welcome relief for renters and young couples or individuals looking to buy their first home.

Across the US, asking rents hit all-time highs earlier this year.

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The_Juggernaut's picture

Lol @ those stupid fucks. Hey, we'll buy that real estate back from you for a quarter of what you paid.

winged's picture

While billions are lost by Americans and in tax revenues, which create jobs. Yeah, lol. Jeez, the CURSE has even fried American thinking. http://wp.me/p4OZ4v-3z

Slack Jack's picture

Look Out Manhattan - Chinese Foreign Real-Estate Spending Plunges 82%;

I guess the Chinese have figured it out;

Global warming means that Manhattan property will only decrease in value with time.

So, why is the global rise in temperatures so worrisome?

For one thing, as temperatures rise good farmland will become desert (e.g., dust-bowl conditions will probably return to the American Midwest).

Another major problem is sea-level rise.

Have a look at http://pubs.usgs.gov/fs/fs2-00/

The U.S. Geological Survey people claim that;

The Greenland ice sheet melting will raise sea-level 6.55 meters (21.5 feet),
the West Antarctica ice sheet melting will raise sea-level 8.06 meters (26.4 feet),
the East Antarctica ice sheet melting will raise sea-level 64.8 meters (212.6 feet),
and all other ice melting will raise sea-level 0.91 meters (3 feet).

For a grand total of about 80 meters (263 feet).

So, what does an 80 meter (263 feet) rise in sea-level mean. Have a look at the following map of the world after an 80 meter rise. It means that over one billion people will have to be resettled to higher ground and that much of the most productive agricultural land will be under water. Fortunately, at current rates, the Greenland ice sheet will take over a thousand years to melt and the Antarctica ice sheet, much longer. However, the greater the temperature rise the faster the ice sheets will melt, bringing the problem much closer. Remember, the huge ice sheet that recently covered much of North America, almost completely melted in only 15,000 years (today, only the Greenland ice sheet, and some other small patches of it, remain). Since then (15,000 years ago), sea-levels have risen about 125 meters (410 feet), only 80 meters to go.

The ice sheets have been continuously melting for thousands of years. What is left of them today, is still melting, and will continue to melt. Human caused global warning will cause this remnant to melt significantly faster. This is a big, big, problem.

For HUGE detailed maps of the "World after the Melt" go to:


Global temperatures are increasing. And by quite a lot each year.

2016 is the hottest year on record for global temperatures.

This is 0.0380 degrees centigrade hotter than the previous record year which was 2015.

0.0380 is a large increase in just one year.

2015 was the hottest year (at that time) for global temperatures.

This was 0.1601 degrees hotter than the previous record year which was 2014.

0.1601 is an absolutely huge increase in just one year (at this rate temperatures would increase by 16 degrees in a century).

2014 was the hottest year (at that time) for global temperatures.

This was 0.0402 degrees hotter than the previous record year which was 2010.


The conspiracy to hide global warming data.

The National Oceanic and Atmospheric Administration (NOAA) is given tax money to make global temperature records available to the public. However, certain people at NOAA continually sabotage this aspect of NOAA's mandate. For example, these people have (deliberately) sabotaged the web-page that delivers the temperature records.

Look for yourself:

Go to the page: https://www.ncdc.noaa.gov/monitoring-references/faq/anomalies.php scroll down to the The Global Anomalies and Index Data section and click the download button and see what happens. Well, you get the message:

"Not Found. The requested URL /monitoring-references/faq/anomalies-download was not found on this server."

I guess that the 2017 data must be truly horrible if they have to hide it away.


Gerrilea's picture

Hon, your propaganda won't work...


Have a nice day.

silverer's picture

Twenty years ago they said it would happen by now.  But my gondola is still in the garage.

Ramesees's picture

They found an easier way to launder money. Bitcoin.

Ride the wave - there is lots of money still to be made.

fleur de lis's picture

These global warming cultists are so stupid.

If they spent a day in a library they would learn that the Earth has been undergoing massive climactic changes since it formed.

They would learn the significance of the term Pangaea.

The would learn dinosaurs ruled the Earth when it was a jungle everywhere, because lizards cannot survive the cold below a certain temperature.

They would learn that Antarctica once had foliage -- impossible without sunshine and heat.

They would learn that the Earth underwent an Ice Age that meant the whole planet was a circular ice cube until the thaw began, they would learn about the terms "forward progress" and "meltback" and how it affects us today, and the new life forms that came with with warming temperatures.

It goes on and on.

If these cultists are so concerned about global warming they should do something about the MIC always using weapons and equipment that really heats up the atmosphere more than cars and factories ever could.

Obliterating entire cities and huge swaths of land with chemical firestorms contibutes to severe air pollution that affects global temperatures, so let them go after the warmongers first and start nagging them to reduce their carbon footprints.

Let's see how far they get.









Winston Churchill's picture

Looks like Britbobs brother from another mother has found ZH.

They could join forces and endlessly go on about the danger to the Falklands and Gibraltar caused by

Globull waning.

holmes's picture

I see you've been drinking Al Gore's kool-aid Jack. Just remember you're numbers mean shit when the sources are making them up.

HalinCA's picture

Slack dude ... I bet you trade CO2 credits for a living.

For the rest of us, if and when we decide to "do something" about CO2, at the minimum any credit trading mechanism should be commission free.

Tallest Skil's picture

Blow your fucking brains out, paid shill. Seriously, kill yourself. You're going to be executed for crimes against humanity anyway, so get ahead of the curve. Global warming does not exist. This is proven and admitted by NOAA, NASA, and all other agencies.

yogibear's picture

Japan- Hawaiian 80s real estate buying spree evolved to Chinese - Manhattan real estate.

LOL, all you Chinese investors have all that hot money, we'll make it vanish.

Japan's U.S. Real Estate Buying Plunges


Xena fobe's picture

Japanese US real estate buying was mostly commercial and did not come with millions of Japanese immigrants.  It lasted a few years, not decades.  The scale of Chinese buying is off the charts in comparison. 

The Real Tony's picture

But it will end up the same way.

Blue Balls's picture

Chicoms so in love with fraud one can only admire their desire to leave the shit they created, oh wait that would be 90% on the US immigrant population.

Déjà view's picture

Reason N.Y. was never on Phat Phuck to nuc list...

GUS100CORRINA's picture

Look Out Manhattan - Chinese Foreign Real-Estate Spending Plunges 82%



land_of_the_few's picture

Maybe they don't like the rioting either.

Handful of Dust's picture

I notice the Chinese are smart enough to stay away from Detroit, Baltimore and Shitcago where da peeples are free to express demselbes.

SmokeyBlonde's picture

Welcome to ML #101!

Guessing Asian still don't know finer points ...

Blue Steel 309's picture

Wow right then the (((ZOG))) is threatening their neighbors with a holohoax. So Strange.

sgt_doom's picture

Just because Fake News reports something, it don't mean it's so!

The three-pronged attack being waged by China on the USA:

1)  Cyber warfare, including their partnership with North Korea's Bureau 121;

2)  Economic warfare, specifically real estate investment speculation; and,

3)  Flooding the USA with Fentanyl.


So far, appears to be working . . .

DaBears's picture

The great casino of China is running out of real money to cash out their Mao-nopoly money. What's the fix now? Or does it really matter if you can't exchange it for anything outside of China.

kiwigal's picture

Bitcoin, Ether, the multitude of small crypto that appear.

HRClinton's picture

LOL.  "Real" money?   You mean, like "real Fed fiat"?

Pot meet kettle. 

dirty fingernails's picture

I hope Jared cashed those checks he traded for visas

Gen. Ripper's picture

Chinese civil war by 2020

HRClinton's picture

Ibid: US Civil Insurrection on DC Swamp by 2020.


sgt_doom's picture

We've been hearing that since 1990, even longer than DIA reports on Iran having nukes!

83_vf_1100_c's picture

The chinks should start buying in the Hamptons. They are selling at crazy low prices.

I'll never understand city folks. That pic makes me think of those African termite mounds. People are not built to live like that. A shack on the prairie is better than a million dollar apartment in a crowded city. jmo and obviously millions disagree.

HRClinton's picture

The 'chinks', as you call them, can/should use NK as a war proxy against the US, to get US RE when "there's blood in the streets" (to borrow the Rothschild mantra).

This means...

   1. Get the US to attack NK in a first/pre-emptive strike. 

   2. Get NK to retaliate with 1-3 EMPs to blanket the US (and adjacent parts of Canada).

   3. With the electrical and electronic systems and products fried, the 6 mo. to 3 year power outage (with no running water, phones, computers, radio, TV, internet, car/truck transport, no planes flying, no modern medicine, no modern jobs, no shipped goods and food, no Unemployment or Welfare payments...), the US population would shrink to 10-20% in 1 year.

At this point, how much do you think that these 'chinks' will have to pay for formerly fancy RE?  Son, being dumb, uninformed and cocky is no way to go through life.

(FWIW, the rest of world that has had enough of US imperialism, is waiting with baited breath and a Viagra sized case of Schadenfreude, for the ridiculed Underdog to beat the global Bully.)

stitch-rock's picture

What if this is actually Hillary Rodham Clinton responding here...

GreatCaesar'sGhost's picture

Do you really think the Norks have a bomb that can reach the US mainland? Your scenario isn't unreasonable, though, if it's true. Funny about the world having enough of US Imperialism, they don't know what "imperialism" is if they've had enough of the US brand. Wait until an all-powerful China teaches them what real "imperialism" is. See Tibet for a preview.

Moving and Grooving's picture

The ones the norks (love that) put in shipping containers don't even need to be nuclear weapons - all they need is some radioactive waste and enough oil-soaked fertilizer to spread it around. The man with the cell-phone number to call to detonate it can be in Bejing when he places the call. Capisch?

FredFlintstone's picture

The narrative is probably more like this: the deep state is constantly fucking with NK and getting them paranoid and the deep state's MSM is reporting how crazy and wound up NK's leader is. If the deep state cannot provoke NK into making the first move, they will false-flag it to start the hot war. 

chosen's picture

We need to get the chinks out of the entire US real estate market.  Confiscate what they have bought in the last ten years.  Fuck them.

Paul Kersey's picture

Yeah, "chosen", let's just say fuck it to individual property rights. Let's just trash what America was founded on. Hell, the USG did it to the Japanese, when they confiscated their homes and stuck them in interment camps. Yeah, let's fuck the folks that actually paid cash for their properties, because that will make America great again. How ironic that you want to go all commie on the Chinese coming here to make sure that they get their kids out of Communist China.

Chosen, I'll take those Chinese with money any day over the gang bangers in the south side of Chicago, the meth heads and hillbilly heroin users of West Virginia, the war mongering neocons in Washington or the the TBTF banksters in NYC, LA and Charlotte, NC and the jealous anti-free market xenophobes.

SmokeyBlonde's picture

Fuck you amd foreign national rigthts over citizenz ....

milking institute's picture

I used to deal with chinese clients on a regular basis,high end homes in So Cal.  I'm at the point where i will not return calls when i hear "the" accent. too many bad experiences. first thing you will  hear: "you maka cheapa!" and i say No but thanks for calling. in general they treat contractors like servants,it's a cultural thing i guess. if you get paid you're lucky. zero trust,took me a while to figure it out and a native chinese contractor who specializes in chinese clients told me :" in china everybody fucks over everybody,it's a national sport and they assume it's no different here". i have no idea how they get work done on their homes,most guys i know add 25% to their bids just to put up with these fucks....

chosen's picture

I am okay with the Jap internment camps.  Probably saved some American lives. 

Property rights in America are for Americans, not foreigners.   We owe nothing to foreigners.  If foreigners want property rights, they should stay in their own countries.

I wasn't talking about American criminals, I was talking about Chinese criminals.  Why change the subject, that's stupid. 

As for a "free market", what universe are you living in?

Paul Kersey's picture

"what universe are you living in?"

The one in which we are ruled by fucking winner-take-all, wealth extracting financial criminals. Try casting a vote for a Congressional or a Presidential candidate who is not a financial criminal or owned by financial criminals and/or war profiteers (redundant). Give me five names of members of Congress who do not meet that description.

the artist's picture

I deal with these idiots every day. The FOBs have low morals. Children are almost literally spoiled rotton to the core. And they think they are intelligent to boot. Dumb as a dumb bag of rocks. You think American millenials are worthless? try interacting with a few of the Chinese versions. Their internal dialogue consists of one word, Me". 

I feel sorry for them when the rug gets pulled. Americans of all types will unionize against these people and they will slowly bleed their assets over to hard workers and move to newly created mega ghettos... They just dont get it.

Their money, if it makes it here, you can bet was ill gotten on the backs of modern slaves. 

I know I wont hire any of them to do anything and I am not alone. 

land_of_the_few's picture
ACM International Collegiate Programming Contest
Highest Rank Of Countries In Last Final (2017)


Top 20 teams:

01    Russia            St. Petersburg ITMO University
02    Poland            University of Warsaw
03    South Korea    Seoul National University
04    Russia            Saint Petersburg State University
05    Russia            Moscow Institute of Physics and Technology
06    China             Tsinghua University
07    China             Peking University
08    China             Fudan University
09    South Korea    KAIST
10    Russia            Ural Federal University
11    Sweden          KTH - Royal Institute of Technology
12    Japan             University of Tokyo
13    Russia            Perm State University
14    China             Shanghai Jiao Tong University
15    United States  University of Central Florida
16    China             University of Electronic Science and Technology of China
17    Finland           University of Helsinki
18    Australia         University of New South Wales
19    Canada           University of Waterloo
20    China             Fuzhou University


HRClinton's picture

Where are the See Eye Eh and Mo' Sad competitors?

Betcha they can hack into the Solution files, and then leave a trail that points to Russia.

And thus score an "11".