Chinese investors are set to shell out $ 20 billion in property at sea this year, up 21 percent in 2014 as developers and real estate insurance more domestic internationalize their holdings, said Jones Lang LaSalle Inc. on Monday .
The investment in offshore China had increased 46 percent, to $ 16.5 billion last year in the previous year, with nearly 70 percent goes to the commercial real estate, property consultancy said in a report.
Output spending on commercial property, including office buildings, for the first time exceeded domestic investment, the company said.
"The easing of restrictions in the last few years by the Chinese government has (done) ... much easier for institutions and individuals to move money abroad," said David Green-Morgan, head of global with Singapore-based research to Capital Group International at JLL.
Large Chinese insurers, including Ping An Insurance Group Co of China and Anbang Insurance Group Co, have become major buyers in global markets.
Earlier this month, Ping An, the second largest insurer in China, bought the Tower Place office building in London for £ 327 million, after buying the Lloyds insurance building in London.
Last October, Anbang agreed to buy the Waldorf Astoria in New York City for $ 1,950,000,000.
Driving outbound investments in China are confident the country's insurance regulator, which allowed companies to invest in real estate outside the mainland and Hong Kong 2012 rule changes.
In late 2014, Chinese insurers invested almost $ 24,000,000,000 outside China, accounting for 1.4 percent of total industry assets, said Zhou Yanli, vice president of China Insurance Regulatory Commission in a press conference last Friday.
Last year, about 20 percent of the insurance investment abroad was to real estate, said Zhou.
Chinese property developers, including Dalian Wanda Group Co, have also been transferred to globalize their portfolios to ensure long-term returns as China's property market cools.
Dalian Wanda Monday announced an investment of $ 1 billion for the purchase of two buildings in Sydney Harbour, the second investment of Chinese conglomerate in Australia.
Europe was the most popular destination for Chinese investment in overseas property in 2014, raising $ 5.5 billion, JLL said. London tops the list of favorite cities with a $ 4 billion capital inflows, followed by Sydney and New York City.
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