China Stock Woes Good for New York Real Estate

Investors now have their regime’s blessing to seek higher returns outside China

NEW YORK—Mainland Chinese investment in New York City real estate is unlikely to slow down despite concerns over China’s turbulent economic and political situation, according to industry experts who work with Chinese buyers.

Interest in luxury tower apartments, as well as larger commercial real estate opportunities, is likely to even increase as China’s millionaires seek safe investments and higher returns in the United States.

Chinese buyers have become the most aggressive foreign investors in New York City, surpassing Russians in volume and mass, according to Russian-American real estate attorney Edward Mermelstein, partner at New York-based Rheem Bell & Mermelstein, LLP, a firm specializing in high net-worth foreign individual and corporate investments in the United States.

On an institutional level, the large Chinese funds are now competing with the largest U.S. funds in the U.S. commercial real estate market.

On an institutional level, the large Chinese funds are now competing with the largest U.S. funds in the U.S. commercial real estate market, he said.

While these quasi-Chinese state corporations pour billions of dollars into New York City commercial and residential real estate investments—more than $3 billion last year—much of this investment is now taking place with the blessing of China’s leaders, which over the last six months have encouraged Chinese firms to seek higher returns in overseas investments, according to Mermelstein. “The government of China now is very pro foreign investment,” he said.

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