Investors have $1.7T ready to deploy, but activity will be flat in 2017: CBRE

Investors have $1.7T ready to deploy, but activity will be flat in 2017: CBRE

With prices high, buyers are looking for yield over growth

There’s $1.7 trillion of dry powder across the globe just waiting to be deployed into real estate in 2017. But investor concerns ranging from a real estate bubble bursting to a black swan economic event throwing markets into turmoil has analysts projecting transaction volume to stay flat at $895 billion, according to CBRE.

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China’s Capital Outflows Just Reversed, Bad News For Global Real Estate

China’s Capital Outflows Just Reversed, Bad News For Global Real Estate

The world’s greatest overseas real estate binge might finally be over. According to the People’s Bank of China (PBoC), China saw its foreign exchange reserves rise to over US$3 trillion. The unexpected rise is the first in 8 months, and may indicate that the new regulatory crackdown on capital outflows is actually working. This is bad for real estate markets that have seen a sudden surge of buying activity from Mainland Chinese buyers.

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REITs face a new reality as foreign capital evaporates

REITs face a new reality as foreign capital evaporates

Festinger’s 1957 theory of cognitive dissonance notes that individuals seek consistency in their cognitions (beliefs) so they tend to twist facts to remove any conflict (dissonance). REITs now seem to be suffering from ‘valuation dissonance’ with low share prices and high portfolio valuations. But although they seem cheap, we don’t think they are good value.

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China’s Capital Controls Could Crash Vancouver Real Estate

China’s Capital Controls Could Crash Vancouver Real Estate

Global real estate markets are breaking a sweat, and Vancouver should be no exception. Those same foreign buyers that sent property values soaring around the world are now a little short on foreign currency. New regulations now prohibit the exchange of yuan for real estate, making it tricky to get currency into foreign markets. Without that sweet yuan converted, Chinese buyers won’t be able to continue driving prices, and could have trouble paying for existing property.

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Foreign Money Looks Beyond Gateway Cities for Apartment Assets

Foreign Money Looks Beyond Gateway Cities for Apartment Assets

U.S. apartment properties still look good to foreign investors.

“We expect foreign capital flows into the U.S. to increase,” says Chris Akins, senior managing director of multifamily with CBRE Capital Markets. “The U.S. market continues to be a safe haven for foreign capital.”

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