February 2017   Volume 43, Number 2      


Chinese Developers Reassess U.S. Projects

Some Chinese developers are lowering their profit expectations or are pulling out of their U.S. real estate projects completely as high real estate prices and rocky partnerships are forcing them to rethink their investment strategies.

According to analysts, an increasing supply of high-end New York condominiums is expected to result in losses for some Chinese developers. In addition, Chinese developers’ partnerships with U.S. developers on other projects have resulted in some unexpected legal concerns, which have caused delays in completing these projects.

“I see a danger in the real estate market in the U.S.,” John Liang, Xinyuan Real Estate’s managing director of U.S. operations, told The Wall Street Journal. “With its seven- to eight-year cycle, you get a sense now that it’s peaking.”

A project by New York developers Slate Property Group and Shenzhen-based China Vanke is currently stalled due to fierce opposition and an investigation by federal prosecutors and the state attorney general.

The U.S. real estate market has seen a large influx of Chinese capital over the past five years. Now many analysts believe that these investments may have peaked for the present moment. However, they do not think that the Chinese are likely to stop investing in U.S. real estate completely.





In this issue:

Tiny Home Neighborhoods Are Popping up Across America

Chinese Developers Reassess U.S. Projects

Commercial Real Estate Market Sees Mixed Results After Election

First-Time Homebuyers Struggle to Find Affordable Homes to Purchase

Hiver CEO Predicts Major Tech Trends in Real Estate for 2017

Homebuilder Confidence Has Increased, but They’re Not Building New Homes

Newly Created S&P 500 Real Estate Sector Continues to Decline

Redfin Predicts 2017 Will Be the Fastest Housing Market on Record

Russian Interest in U.S. Real Estate Increases After Trump Election

Rising Sea Levels Are Forcing Agents to Rethink How They Sell Coastal Properties


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 The Insurance 411. Tel. 877-762-7877. theinsurance411.com