Earlier this fall, Beijing-based real estate firm; Xinyuan Real Estate Co. revealed plans for some new developments in the New York City market. If everything on the company’s list of plans is executed, they could be spending upwards of $100 million in the coming weeks, right in New York City. However, Xinyuan Real Estate Co. isn’t the only firm that is looking to make a mint in New York City. Recent trends have shown that a number of Chinese real estate pros have come to reap the rewards that this city has to offer; viewing NYC as a long-term investment.
This success can be seen by many recent investors including two major Chinese entities who in the last month alone have secured over $4 billion in New York City real estate deals. One of these developers is Greenland Holdings; a firm that agreed to pay more than $3 billion to get a stake of Atlantic Yards. The investment in this rising new development will give him 70% stake of the Brooklyn based project. According to recent reports about the development of Atlantic Yards, there are plans in place for 6,430 housing units in the area.
Another Chinese development firm, known as the Fosun Group, also closed a major New York City deal last month when they won the bid for a new downtown office building. This landmark office development, 1 Chase Manhattan Plaza, was secured by the company for a cool $750 million. Earlier this year, real estate mogul Zhang Xin, also from China, secured a deal for $700 million for the General Motors Building in New York City.
These types of Chinese infusions into the NYC market have been surprising to some, but they make sense to investors. By looking at the history of investments in the city, it is clear that the NYC market is known for delivering investors with strong profit returns. Also, when compared to other comparable big name cities such as London and Hong Kong that draw similar luxury buyers and professional crowds; property in New York City is actually quite affordable. Moving forward, experts only expect more activity from Chinese investors as they look to make their mark on the NYC real estate world.
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